What Are the Most Secure Online Payment Methods for You?

In today's digital age, selecting the right payment method can be a bit overwhelming. So which are the most secure online payment methods to use?

What are the limitations of using traditional payment methods?

Paper checks, wire transfers, and similar traditional payment methods have some limitations that open doors for modern cyber threats. Paper checks, for example, expose sensitive information like the account number and routing number of the issuer; if one of these checks ends up in the wrong hands, fraud is the least of your worries. The process of processing the checks is also time-consuming and fastidious. Wire transfers, meanwhile, are instantaneous and irreversible, making them an inviting target of fraud, especially in the Business Email Compromise (BEC) sector. Once you initiate the wire transfer, there's no way to retract it, so if you take the bait, you can say goodbye to your money. They also have high transaction fees. Phone transactions break the mold, as they’re often executed manually on whichever credibly large merchant or payment gateway you’re using. This is slow and prone to human error. You can see? All that’s left for cash is to be lost or stolen, and traditional cards are vulnerable to hacking.

How does blockchain technology enhance the security of greater payment methods?

Indeed, any payment options not comprised of those traditional methods is worthy of consideration. Your best options are digital currency solutions that utilize blockchain technology, which highlights decentralization, immutability (once a transaction is recorded on a blockchain, it cannot be altered), and accountability. Blockchain transactions create a permanent record that the owners of the information can verify. With blockchain, data is spread over a decentralized computer network, so there’s no single point of failure or vulnerability. All transactions are encrypted (so no one can see what they are), time-stamped, and tied to previous transactions, making them uneditable. And, thanks to smart contracts that execute based on previously defined conditions, payments can also occur quickly without the need for human generalization or approval.

What hidden vulnerabilities should freelancers be aware of?

However, freelancers must always be on the lookout for the hidden vulnerabilities that these secure payment systems manage to skirt around. These hidden vulnerabilities include common phishing and social engineering attacks that trick victims into revealing sensitive information, like passwords or credit card numbers. (Usually by deceiving users into clicking links in fake emails or websites.) Insufficient authentication and authorization, such as too many accounts with admin access and poor credentials, will expose payments to unauthorized access when no one is looking either (ever worry about sharing? Do not use these payment methods!). A further risk is Man-in-the-Middle (MitM) attacks, where attackers intercept and manipulate communications between the parties involved, instead of going directly to the desired destination. Transactions made over your phone or computer could suffer interruptions without needing any visible hacking. Data breaches and DDoS attacks are also possibilities, disrupting service even to the highest levels of your organization - think the iTunes Store, for instance. IoT vulnerabilities are also an active avenue of attack, as hackers could piggyback into any unsecured connected devices your organization uses.

What emerging payment methods are available?

Emerging payment methods increasingly offer better security than credit cards or ACH do. Digital wallets like Paypal or Apple Pay use tokenization and encryption, storing no credit card information or anything similar on your devices, and often request biometric or similar verification for each transaction. This makes them far less inviting for criminals than hardcopy credit cards, which they can simply steal. Artificial intelligence is also entering the scene, helping to filter transactions in real time and reduce fraud.

What are the best practices for online transactions?

There are various ways to protect your online transactions. They're good, safe ways, but they’re also common-sense, like ensuring that you always use HTTPS or something better. Consider monitoring your accounts regularly. By taking basic steps and understanding how payments and transaction systems are secured, you can navigate the payment landscape more calmly.