Nearly 3 in 4 in SEA encountered at least one cyberthreat against digital payment methods, Kaspersky reveals
A recent Kaspersky research showed a positive correlation between the adoption of digital payment methods and the awareness of the risks and threats that are associated with them in Southeast Asia (SEA).
Titled “Mapping a secure path for the future of digital payments in APAC”, the study discovered that nearly all respondents in SEA (97 percent) were aware of at least one type of threat against e-payment platforms, while almost three in four (72 percent) have personally encountered at least one type of threat associated with this technology.
In many ways, this awareness could be attributed to the volume of media coverage about cybersecurity incidents, especially last year, and the combined efforts of governments and private sectors in boosting security awareness amidst the rise of mobile banking and e-wallet adoption in the region.
More than a quarter of the respondents encountered social engineering scams via texts or calls (37 percent), fake websites (27 percent), fake offers and deals (27 percent), and a quarter reported receiving phishing scams (25 percent).
Remarkably, social engineering scams are the top encountered threat for most SEA countries, including Indonesia (40 percent), Malaysia (45 percent), The Philippines (42 percent), Singapore (32 percent), and Vietnam (38 percent). The only exception is Thailand where its top encountered risk is fake websites (31 percent).
Having more exposure to cyber threats could directly correlate to a higher level of awareness. Social engineering scams, fake websites, and fake offers and deals are among the most commonly encountered threats, with a large percentage of awareness at 72 percent, 75 percent, and 64 percent respectively.
When it comes to measuring the financial impact of a cyber-incident involving digital payments, the amount of financial loss appears to be mostly capped up from less than USD 100 to USD 5,000, with a very small proportion of respondents having reported incurring a loss of more than USD 5,000.
Majority of respondents (52 percent) admitted that they lost money due to bank account and credit card fraud. In this group, 23 percent lost less than $100, 13 percent lost between #101-500, while 48 percent indicated that they did not lose any money from this threat.
Account hacked because of a data breach (47 percent), fake and fraudulent apps (45 percent), ransomware (45 percent), and fake offers and deals (43 percent) are also listed as the top 5 threats resulting in financial loss in SEA.
At the same time, the impact of a cyber threat when it comes to digital payments does not just impose a financial burden on consumers, but also affects them from a psychological perspective.
After encountering a cyber incident, more than two in three respondents from the region (67 percent) said that they became more vigilant. More than a quarter (32 percent) were also anxious about recovering their lost money.
Consumers are also concerned about their trustworthiness. Some 36 percent indicated they still trusted that the bank and mobile wallet provider would resolve the issue, but 18 percent said they had less trust in digital payment providers. Nonetheless, the consequence continued.
Over a quarter (30 percent) of the respondents blamed themselves for such mistakes, while a small portion (12 percent) admitted that they were involved in a misunderstanding with their spouse, family members, and friends because of it.
“The adoption of digital payment methods appears to be a double-edged sword, with convenience representing the good benefits and cybersecurity risks being the less desirable aspects of it. On the contrary, we believe that categorizing digital payments in such binary ways is premature. As with any emerging technologies, there is no inherent good or bad characteristic to them; rather, how we use them to achieve beneficial outcomes is determined by how we interact with them. If we are to fully realize the benefits of digital payments, it is important that all stakeholders, including the government, digital payment providers, users, and even cybersecurity firms, work together to build a stable, secure, and future-proof payments ecosystem,” says Sandra Lee, Managing Director for Asia Pacific at Kaspersky.
When it comes to action taken after encountering threats, almost 2 in 3 of respondents (64 percent) changed passwords and other security settings on their banking and mobile wallet apps, half of them (50 percent) called the bank or related mobile wallet company, while 45 percent informed their family members and friends about the incident.
Cybersecurity protection calls more attention to consumers once they come across the threats. A tad more than a quarter of respondents (26 percent) said they installed security solutions on infected devices, while the same percentage (26 percent) said they did so whether or not their devices were infected.
Fresh start is also an option, 15 percent of respondents said they downloaded a new mobile wallet and created a new account simply to be safe.
