Breaches in The Financial Sector Have Retailers on High Alert

Breaches in The Financial Sector Have Retailers on High Alert – TokenEx Provides an Omnichannel Security Solution

Jewel-Osco, Home Depot, JP Morgan have joined the throngs of other companies who have been breached. All of the most expensive hardware, monitoring systems, and preparedness could not overcome the craftiness of cyber thieves. JP Morgan is considered, internationally, to be one of the most well funded cyber security programs to the tune of $250 million a year, yet, cyber thieves pulled off a zero-day attack for the second year in a row? Yep, second year in a row. Retailers must take note, because similar to financial institutions, they accept/transfer money over multiple acceptance channels. Operating in an Omnichannel environment is mandatory for retailers wanting to capture the next generation of wealth, but there are serious security vulnerabilities involved.

Payment channels have changed dramatically over the past 10 years. Storefront, eCommerce, ACH, Call Centers, Pay buy mail, and now mobile payments are causing retailers to re-think their data security strategies. How much money is stake with new acceptance channels? How do you secure this enlarged attack surface? What types of security vulnerabilities are retailers facing? Moreover, what is the best way to secure your data environment, while extending payment flexibility to all of your customers?

Why Omnichannel payment acceptance is a No-Brainer

Over $235 Billion dollars was processed globally in Mobile payments in 2013. That number will almost triple by 2017. Bottom line, retailers better add mobile payment to their Omnichannel payment environment. Mobile payments enable EVERYONE the ability to make purchases from their smart phone or device. Retailers must embrace payment channels that the current and future generations will be using, while still providing “standard” payment channels to already existing customers. This new purchasing community represents a more powerful purchasing community than the current one.

According to the Hartman-Group, Millenials (Ages 18-33) represent 27% of the current population with an estimated spend of $1.3 Trillion dollars/year. While they spend less per person, the shear numbers and size will dominate retailers for years to come. For retailers, this is simply too much money to ignore and enablement of an Omnichannel environment, allows them to capture this demographic.

Vulnerabilities in Omnichannel Acceptance

You’re increasing your attack surface with new technologies. Mobile, ACH, Call Centers, e-Commerce are just a few of the payment acceptance channels that retailers must offer to stay current with their ever-changing customer base. Allowing multiple payment acceptance channels creates greater risk, because you have more devices to secure. This creates a greater level of PCI compliance and scope. Translated, this means more overhead for your organization to secure you Omni-channel environment, because of the greater risk for a data breach.

In the past there has been a dial-up line for transaction processing, now you’re dealing with wireless, cellular, and wired – among others.  Omnichannel payment acceptance increases the risk exposure and attack surface for retailers due to new technologies and applications to service their needs.

TokenEx Secures your Omnichannel Payment Environment

Cloud Tokenization removes sensitive data from your environment and replaces it with Tokens. These tokens have the same look and feel as payment information, but if breached they render meaningless values to cyber-thieves. Imagine a data breach where you don’t lose sensitive data and have to apologize to your customers, because you were not a good steward with their data. Furthermore, you remove the risk and compliance from your environment, while offering a holistic data security solution, granting both you and your customers’ confidence in making secure transactions across your Omnichannel environment. Remove risk and reduce compliance.

From e-Commerce, Data Vaulting, Web Services, Recurring Payments, Batch Tokenization to Virtual Terminal Proxy, TokenEx will secure your risk-points, while remaining processor agnostic. We integrate with all payment gateways,  allowing greater flexibility in selecting the payment processor of your choice. The removal of toxic data (PCI, PII) lowers your PCI compliance and scope. The majority of our customers are able to save enough money in reduced compliance/ scope that they are easily able to pay for our Omnichannel solution. To find out more information on how you can confidently secure your data environment and not be the next casualty of a data breach, visit Follow us on Twitter and LinkedIn

Topic(s): payments , data security , PCI DSS , tokenization