E-Payment to be regulated after fraudulent Pay-Pal transactions

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imagesConsumers and security experts are calling for e-payment service providers to be regulated including banks following a series of fraudulent PayPal transactions on users credit cards in the last few months. This comes after The Straits Times reported over a week ago that hackers had stolen from a larger-than-usual number of Singapore PayPal accounts in the last two months. The losses ranged from $50 to more than $3,000. Phishing is the method used by fraudsters to trick their targets into revealing credit card information, passwords and other personal details. When unsuspecting users click on an embedded link in a phishing e-mail or instant message, they will be led to a bogus website where they will be asked to enter their personal information and passwords. Another way cybercriminals steal user passwords and credentials is through malware that has infected computers. The malware captures users’ keystrokes surreptitiously. PayPal’s website could also have been hijacked by hackers, but the company maintained that its system was not hacked into. Pharmaceutical executive Lim Mei Ee, 30, stated that the relevant authorities should ‘put pressure’ on PayPal to add more security layers before letting a credit card purchase go through. This includes requiring users to enter a one-time password (OTP) – randomly generated on security tokens or sent via text messages to their users mobile phones.