Study shows fear of weakened security on new payment technology

A new study by the Ponemon Institute has revealed anxiety at the security of new payment systems, pressured by consumer demand, reports SC Magazine.

The figures come from the 'Data Security in the Evolving Payments Ecosystem Study', conducted by the Ponemon Institute. Nearly 70 percent of the 748 U.S-based IT, security, risk management, product development and other payment based professionals surveyed felt that the pressure to adopt new convenient payment systems could threaten the security of customers.  Ironically, as Payment Week notes, it's the demand from the very customers at risk that prompts the rush to adopt new technology, with 53 percent of respondents stating that customer convenience was more important than security.

Only half of those surveyed stated that they were at least somewhat confident in the security of emerging payment systems. Interestingly though, there was a very clear split in what payment technology the respondents thought offered the greatest risk, with 34 percent arguing online purchases, 25 percent suggesting point-of-sale devices and 24 percent opting for mobile payments.

Worryingly, 47 percent of respondents stated their organization's ability to deal with the risks identified as 'not effective' or only 'somewhat effective.'

So who is responsible for payment security? Once again, there was limited consensus from those surveyed, with 45 percent saying banking institutions, 40 percent arguing for credit card companies and 33 percent suggesting it should be the regulators. This is a different set of answers to the question of who is responsible for protecting customer data following a breach, where those surveyed overwhelmingly argued for the company that lost the data (75 percent) and the banks that issued the cards affected (69 percent).

Further consensus was agreed on the need for greater collaboration within the industry, with Michael Bruemmer from Experian - the sponsors of the survey - telling SC Magazine, "There is broad consensus around the need for increased collaboration to solve the security issues facing the industry, with 85 percent of respondents believing greater collaboration is important to ensure the security of current and future payments infrastructure."