Security in International Payments

In today’s digital world, security is paramount, especially when it comes to international payments. As we increasingly rely on online platforms to move money across borders, the stakes have never been higher. With billions of dollars at play and sensitive financial data on the line, ensuring secure transactions is crucial to protecting both individuals and businesses from the ever-present threat of cybercrime. While technology has made international payments more convenient, it has also opened up new avenues for fraud and unauthorized access. This makes robust security measures not just a nice-to-have, but an absolute necessity to keep your financial information safe in the digital age. Let’s explore why security in international payments is so important and how you can safeguard your transactions.

Why Security in International Payments is Important

Have you heard about phishing attacks, identity theft, and unauthorized transactions? If not, that’s probably because secure cross-border payments played a crucial role in protecting you against various types of fraud. By employing advanced encryption and authentication methods, these secure systems ensure that sensitive information remains confidential and out of reach for cybercriminals. In essence, advanced encryption and authentication methods provide a strong defense, keeping your financial data safe and secure while you navigate the digital world. But don’t be too complacent—criminals are still out there, looking for ways to siphon off your money. 

300,487 phishing reports filed in 2023

In 2023, phishing attacks were running rampant, with the Internet Crime Complaint Center (IC3) logging 300,487 reports. Financial institutions were the prime targets, catching 27.7% of these attacks. The total damage? A whopping $53 million in losses from successful phishing scams. Fast forward to 2024, and phishing is still a major threat, with email being the main culprit in 91% of incidents. 

62% spike in identity theft cases reported

Identity theft also saw a big spike in 2023, with a 62% increase in cases requiring restoration. Scammers were busy with AI-powered cons and spear phishing. In the U.S. alone, identity theft cost adults $43 billion last year, according to an AARP report. As to exact numbers for unauthorized transactions, they are harder to come by, but it’s clear that the rise in phishing and identity theft has led to an uptick in fraudulent charges and unauthorized transfers, too. Essentially, if your personal info is compromised, it’s a good bet that some sketchy transactions might follow. 

That said, while safe international money transfers are vital, they’re not a foolproof shield. Clearly, these threats aren’t going away anytime soon. So, what’s the game plan to keep yourself safe? Stick around as we explore some straightforward tips and tricks to beef up your defenses and keep your financial info out of the wrong hands. But first, can something like that happen to you?

Main Security Threats

Phishing

Protecting against fraud in international payments is actually a matter of your own vigilance. Here's a phishing scam you might easily encounter on a daily basis. Imagine receiving an email that looks like it’s from your bank, saying there’s a problem with your account and asking you to click on a link to verify your information. You click the link and are taken to a website that looks just like your bank’s site. You enter your login details, thinking you’re securing your account. In reality, the website was a fake set up by scammers. They now have your banking credentials and can access your real account. It’s called a phishing attack. 

Case in Point: In January 2016, an employee at the Austrian aerospace firm FACC received an email asking for a transfer of €42 million to fund an "acquisition project." The message seemed to be from CEO Walter Stephan, but it was actually a clever scam. The employee, not spotting the fraud, went ahead with the transfer. When the scam was uncovered, FACC launched an internal investigation and found that CEO Walter Stephan had "seriously breached his responsibilities." Both Stephan and the CFO were dismissed, and the company pursued €10 million in damages through the courts. However, the Austrian judiciary ultimately rejected the lawsuit.

Identity theft

How about identity theft? This kind of fraud occurs when someone uses another person's personal information, such as their Social Security number or credit card details, without permission, to commit fraud or other crimes. This stolen identity can be used to open new accounts, make purchases, or even commit crimes under someone else’s name. Consider a situation where someone steals your credit card information and uses it to make unauthorized purchases. They might buy expensive electronics or even take out loans in your name. When these transactions show up on your credit report or bills, you realize your identity has been stolen, and now you have to deal with the financial and emotional fallout.

Case in Point: Jay Patterson, a forensic accountant based in Little Rock, Arkansas, who often works with consumer lawyers to scrutinize major financial institutions, was surprised in June 2022 to receive a statement for an "Everyday Checking" account at Wells Fargo. The account, which he had never opened, showed a balance of $12. Upon contacting Wells Fargo, the account was quickly closed. Patterson, curious and concerned, investigated further and uncovered alarming information about how banks handle consumer financial data. Back in 2016, Wells Fargo was caught opening millions of unauthorized accounts for existing customers to hit their sales targets. This scandal led to the ouster of John Stumpf, who was the bank's CEO at the time. 

Data exfiltration and extortion

As digital transactions and data transfers become more common, so do sophisticated cyberattacks targeting large volumes of sensitive information. In a data exfiltration and extortion attack, cybercriminals breach a system, steal confidential data, and then demand payment in exchange for not releasing or selling that data on the dark web. Unlike traditional ransomware attacks where files are encrypted and held hostage, these attacks focus on the theft of sensitive information, exploiting vulnerabilities in widely-used software. 

Case in Point: On May 27, 2023, during Memorial Day weekend in the USA, a customer detected unusual activity in their MOVEit Transfer system—a tool crucial for handling financial data and secure file transfers. By May 31, Progress Software, the company behind MOVEit, acknowledged a severe security flaw affecting both self-hosted and cloud versions of the software. Despite quick efforts to issue patches, by June 1, cybercriminals were already exploiting the vulnerability to steal financial data from countless organizations. What began as a minor anomaly quickly escalated into a a jaw-dropping $15 billion disaster, with over 1,000 organizations compromised and more than 60 million individuals affected by August 25. This attack, followed by others such as the AT&T breach and the ransomware attack on Bank of America’s service provider, highlights the growing threat of data exfiltration and extortion.

All this leads up to a very simple train of thought. While having secure payment systems is important, they’re not perfectly secure against every risk. In both phishing and identity theft scenarios, the takeaway is clear: these threats are very real and constantly evolving. The best defense is to stay alert and informed about these dangers. How can we do that?

Best Practices for Secure International Transfers

International wire transfers are protected by a combo of smart technologies and regulations. So, how to make secure international payments online? First off, it’s all automated. Encryption scrambles your data so that only the right people can read it. Then, authentication checks that both parties in a transaction are who they say they are. TLS/SSL protocols ensure that your data is shielded from prying eyes as it travels over the internet. Plus, digital signatures, PKI (Public Key Infrastructure), the ISO 20022 Messaging Standard, and security token devices all play their part in keeping things safe. And of course, there’s regulatory compliance, which means following the laws designed to protect you and the financial system from bad actors. Together, these measures make sure your international transfers are as secure as possible. Let’s break down some of these security features.

Encryption

The primary encryption method employed within SWIFT is Advanced Encryption Standard (AES), which ensures that data transmitted through the network is secure and cannot be easily intercepted or deciphered by unauthorized parties. How is it even possible? Alright, imagine you have a secret message that you want to keep safe, and you have a magic key to do that. In the Advanced Encryption Standard (AES), you start by mixing this magic key with your message in a process called AddRoundKey. This is like scrambling the message using the key so that only someone with the same key can understand it. Depending on how strong you want the security to be, the process repeats 10, 12, or 14 times. These are called "rounds," and each round scrambles the message even more using different techniques, like shifting parts of the message or swapping them around. When you want to decode the message, you use the same magic key and reverse the whole process. This involves undoing all the scrambling steps in reverse order with operations like InvSubBytes, InvShiftRows, and InvMixColumns.

TLS/SSL protocols

Transport Layer Security (TLS) is a cryptographic protocol designed to provide secure communication over a computer network. It uses digital certificates to verify the identity of the parties involved in the communication.This process ensures that users are connecting to the legitimate server they intend to communicate with, preventing impersonation by malicious entities. Complicated? Imagine you're having a private chat with a friend online, and you don't want anyone to eavesdrop. TLS and SSL (Secure Sockets Layer) protocols are like secret codes that keep your conversation safe. When you send a message over the internet, TLS/SSL wraps it up in a super secure envelope. This envelope is sealed with a special lock, and only your friend's device has the key to unlock it. This way, if anyone tries to peek at your message while it's traveling through the internet, all they'll see is a bunch of jumbled-up letters and numbers —they can't make sense of it without the key! Before your chat even starts, both your device and your friend's device agree on a "handshake." It's like a secret handshake that spies use in movies to recognize each other. This handshake involves setting up the secret keys that will be used to lock and unlock the messages.

Public Key Infrastructure (PKI)

Public Key Infrastructure is a framework that provides security services using public and private cryptographic key pairs. It is essential for securing electronic communications and transactions over the internet. PKI manages keys and digital certificates, which are crucial for ensuring secure data exchange, authentication, and integrity. Simply put, imagine you’re sending secret messages online, and you need a secure system to ensure only the right person can read them. Public Key Infrastructure (PKI) does this by giving everyone a public key to encrypt messages and a private key to decrypt them. The Certificate Authority (CA) acts like a trusted verifier, issuing digital certificates that confirm the keys belong to the correct person. Before any secure communication, devices do a "handshake" to exchange keys and verify identities. This ensures that only the intended recipient can unlock the message, keeping the conversation safe from eavesdroppers. 

Is transferring money with Volet.com safe?

In the world of finance, trust is everything—and trust is only as strong as the security behind it. At Volet.com, we know that a payment platform cannot function without a solid foundation of safety and privacy. In times of uncertainty, protecting your personal information and funds is more critical than ever. That’s why we’ve made security a cornerstone of our platform, ensuring that every interaction you have with us is protected, from identity verification to processing payments.

Maintaining a secure environment at Volet.com involves more than just safeguarding our own systems. We actively research and monitor external threats, including phishing attempts and other malicious activities. Our background monitoring system continually analyzes user behavior and environment data, flagging any unusual activity. If something seems off, transactions are halted until verified by you. We treat all data with the utmost care, storing it only on physically secure, HSM-encrypted servers. This "better safe than sorry" approach drives everything we do.

Advanced Security Tools at Your Disposal

Volet.com offers a wide range of security features designed to give both personal and business users peace of mind. From intelligent monitoring and IP restrictions to payment passwords and two-factor authentication (2FA), you have a toolkit tailored to protect your account. We recommend activating at least two of these security features simultaneously to maximize protection. 

While these layers of security may seem like extra effort, remember: the stakes are high. A few additional seconds are a small price to pay for safeguarding your personal data and finances.

Why Two-Factor Authentication is Essential

Two-factor authentication (2FA) adds an additional layer of security by requiring you to confirm logins and payments through an external device or app. Powered by Protectimus, our 2FA solution generates one-time passwords (OTPs) via a mobile app or messenger. These passwords are valid for just 30 seconds and are virtually impossible to guess or intercept. Although it’s an extra step, the time investment is minimal, and the added protection is invaluable.

Your Next Steps: Best Practices for Account Security

To ensure your Volet.com experience remains secure and smooth, consider these tips:

• Use strong, unique passwords that are difficult to guess. Never reuse passwords across multiple sites.

• Enable two-factor authentication (2FA) for an added layer of protection.

• Always ensure you’re accessing our platform at Volet.com—avoid searching for it on Google to prevent phishing attacks.

• Be cautious with emails. If you receive a suspicious message that claims to be from Volet.com, contact our support team to verify its authenticity.

• Regularly scan your devices for viruses and malware.

• Take advantage of multiple security tools, like intelligent monitoring and 2FA, for comprehensive protection.

Conclusion

In conclusion, while secure payment systems are crucial for safeguarding financial transactions, they are not infallible. The rise in phishing, identity theft, and unauthorized transactions in recent years highlights the persistent threats in the digital landscape. Advanced encryption, authentication protocols, and regulatory compliance provide robust defenses, but staying vigilant and informed is essential. As technology and cyber threats evolve, so too must our security measures and awareness. Whether it's through secure international wire transfers or everyday online transactions, protecting your personal and financial information should always be a top priority. By understanding and implementing these security features, you can better safeguard yourself against potential risks. If you have any concerns or questions about Volet.com security, don’t hesitate to reach out. Our support team is always here to assist you and discuss how we can enhance your account's safety. Your peace of mind is our priority.