Must Watch of the Week:
A cash-lite/cashless society has always been a shimmering, shining goal for those aiming to digitize their financial ecosystem. A cashless financial ecosystem is (rightly, in our opinion) seen to be modern and more inclusive for all segments of the population. As well, we have written before on the cost of cash upon the ecosystem and its stakeholders. While those issues are still extremely prescient, there are increasing risks associated with digitizing the economy.
As the below video highlights, there are several risks associated with increased digital transactions – most notably, electronic fraud. In the USA, we have seen many, large-scale data breaches at large retailers, such as: Target, Home Depot, and the current one at Wendy’s. Such breaches have impacted tens-of-thousands of customers and severely damaged the merchant’s reputation. The risk of digital fraud is global and the video highlights that electronic fraud cases in Sweden have more than doubled in the past decade.
While many in the industry are well-versed on the merits and business case for digitizing transactions, we must make sure that we are equally aware of the risks faced by those making the leap to digital – most notably the merchants. In developing countries, in particular, we must ensure that the appropriate security structures are in place to prevent such fraud, and also appropriate measures in in place to quickly rectify any security breaches that do occur.
Watch the video here: http://www.cnn.com/videos/tv/2016/01/26/exp-gps-0124-witw-sweden.cnn