At Paxum, we understand the increasing importance of secure online payments in a world where cybercrime is on the rise. According to The Ascent’s study on American credit card habits, 35% of consumers have been victims of credit card fraud.
Moreover, payment fraud is expected to continue increasing and is projected to cost $40.62 billion in 2027 – 25% higher than in 2020, according to Merchant Savvy. That’s why Paxum is so focused on its long-term strategic plan to protect its customers’ funds and process their payments in a secure environment.
Internal measures we take to keep your money secure
We use sophisticated biometric software to verify our customer’s identities
When a customer applies to open an account with us, Paxum utilizes a world-class solution that automates ID and identity verification. Our platform supports the verification of more than 3,500 different types of international IDs using a 4-step process that starts with a user taking a photograph of their ID along with that user’s “selfie” photograph, as both images are uploaded, and the following checks are processed:
- ID PROOFING CHECK: Is the ID document authentic and valid?
- SIMILARITY CHECK: Is the person holding the ID the same person shown in the ID photo?
- LIVENESS CHECK: Is the person holding the ID physically present during the transaction?
- DEFINITIVE ANSWER: Our system provides a score that indicates the confidence level that the image in the selfie matches the photo in the identity document. If the similarity score is too low, we receive an alert for possible impersonation fraud.
We have implemented Two-Factor Authentication
All Paxum customers have Two-Factor Authentication (2FA) enabled by default in their account, for enhanced security. As cybercrime is on the rise, 2FA is a great way to prevent unauthorized people from accessing your account. It requires you to provide two different types of information to sign into your account: both a chosen password and one generated on a device you own; usually your phone. The latter is called a One Time Passcode (OTP). You can download a free authenticator application on your smartphone, such as Google Authenticator or Microsoft Authenticator, to start logging in with an OTP.
Two-Factor Authentication has become global a standard in the payments industry, meant to enhance the security of transactions and protect consumers from theft.
We utilize several Transaction Approval Methods
To prevent unauthorized movement of funds from our customers’ accounts, they must approve their transactions through one of the following methods:
- One-time Passcodes – this provides a great way to prevent unauthorized movement of funds from your account. The mechanism is similar to the OTP referred to above;
- Approval Codes – this method is preferred by users who are used to having their codes written on a piece of paper and kept in a safe place;
- SMS Codes – this security method requires users to have a verified mobile number, where all approval codes will be sent when they initiate a new transfer.
Our Transaction Approval Methods provide an effective layer of security for our customers and their funds.
We have unique fraud detecting software
Paxum hasn’t achieved its longstanding success in the online payments industry by accident. It has an in-house software development team that has engineered a set of programs and procedures that further reduce fraud incidents beyond “off the shelf” security software utilized by many in our industry. Our own applications are actively scanning all transactions initiated by our customers to identify certain patterns and red flags that might lead to fraud incidents. This allows us to detect financial crimes before they even happen.
We monitor transactions in real time
Paxum utilizes an Artificial Intelligence-based software that continuously scans our client database, and monitors and screens all transactions, in order to identify potential problems. This complex software can recognize suspicious activity patterns and stop high-risk transactions as they occur.
We randomly test scan transfers manually
Once a customer initiates a payment transfer in our platform, we have the responsibility to review and confirm that every transaction adheres to internal and international regulations. Generally, the software systems referred to above are foolproof. However, we leave nothing to chance. We periodically perform manual random checks and initiate our own transactions with various fraud flags to ensure that our software systems are operating as intended. We always attempt to conduct these procedures on days and times that have minimal impact on processing our customers’ payments.
What consumers can do to keep their money secure
Financial crime is a real threat not only for business but for consumers as well. With all precautionary measures that businesses are taking, it’s essential that consumers do their part in combating fraud. As we mentioned before, after an account is created in the Paxum platform, we ask our customers to provide us with certain documents in order to verify their identity, which is a critical part of preventing fraud. Having their identity verified and being granted access to using all features of the Paxum platform also comes with the responsibility of helping us to keep fraud away from our systems.
Following are some recommendations and steps you can take to avoid falling victim of online payments fraud:
- Never provide sensitive personal information over the phone. Our customer support agents will not ask for your passwords or the PIN of your card;
- Always create strong, unique passwords and disable automatic logins;
- Be wary of suspicious emails, text messages, and calls. If you get an unexpected inquiry from someone who says they represent Paxum or a government agency, hang up and call the phone number on our website, or on the company’s or government agency’s website to verify the authenticity of the request;
- Always verify the recipient’s information before making any payment;
- Never send P2P payments to – or accept payments from – someone you don’t know;
- Monitor your credit card transactions. If an unauthorized transaction is made, it will show up on your credit card account and statement. You should review your statement details regularly and report any unauthorized transactions immediately to Paxum;
- Report lost or stolen cards. Immediately reporting a lost or stolen credit card reduces the window of opportunity for anyone to make any unauthorized transactions.
As the online payments industry is expanding, new ways of committing payment fraud emerge as well. Paxum wants to ensure its customers that it is taking strong, proven measures to stop fraudsters from infiltrating its systems.
Do you have concerns regarding the security measures Paxum is taking? Let us know via email and we will address them immediately!