One of the results of the development of card transfers is the ability to transfer Card2Card in social networks and messengers. Banks and security experts note that despite relatively high risks for users, this type of transfer has every chance to become popular. Experts also do not rule out that money transfers through mobile services will see significant development in the future.
In the summer, news emerged that users of "VKontakte" and "Odnoklassniki" in Kazakhstan will be able to send money transfers to each other within the social network for the first time. The service is launched with the support of JSC ForteBank. One of the banks considering introducing this product is JSC "ATFBank", but there are some difficulties in implementing such operations.
The current legislation regulates the necessity for storing personal client information within our country, while the data storage of social network users occurs in third countries. When social network users "link" a payment card to their account, the data is directed to a general storage base in the hosting countries," commented ATFBank.
The press service of JSC Altyn Bank reported that the bank does not have a goal to implement transfers within social networks as such. "Last year, we provided our clients with the opportunity to transfer to friends on Facebook, the reaction was excellent, customers liked it - very simple and convenient. However, we do not plan to further develop or connect other social networks," the bank said.
In JSC "Nurbank" it was reported that money transfer systems in "Odnoklassniki" and "VKontakte" allow sending money only from Russian cards, but transfers can be received on cards issued in other countries. However, the bank has not yet considered using this product.
"The advantages of such transfers are that social network accounts have millions of people, require no special registration, and have low fees. The downside is that you still need an account and a card in a Russian bank," Nurbank specialists note.
WhatsApp will surprise us all
As C2C transfers continue to gain popularity among the population, bankers foresee further development in money transfers through social networks. "From a consumer standpoint, the future of transfers on social networks is certain since, in fact, it is still one of the payment methods and, for modern young generations, this method seems simple, convenient, and natural. Small businesses operate on social networking platforms, online stores develop," ATFBank representatives note.
AO Altyn Bank specialists do not consider money transfers through social networks a technological breakthrough or innovation. "In essence, it is a typical P2P transfer, that is, a transfer from one payment card to another," the bank explains. They believe that the future of this method of transfers lies not within social networks, but in messengers. For example, on WeChat, you can not only send money to contacts but also make payments in stores. Bank experts do not rule out that soon WhatsApp will surprise us all.
Also, Instagram and Pinterest services are actively working towards eCommerce, allowing people to select and order goods without leaving the application. "The day is not far when you can see shoes or a bag in a photo, 'put them in the cart,' choose a card for payment and with a satisfied smile await your order," Altyn Bank suggests.
Senior consultant at SAS Russia/CIS for security and fraud prevention solutions, Alexey Konyaev, also notes that the service is not revolutionary new - it is just another way of conducting Card2Card transfers. "The card-to-card transfer function in the Facebook messenger was added back in 2015, Tinkoff Bank has had its own messenger with the MoneyTalk transfer function for several years, and they also launched a money transfer bot on Telegram. "Yandex" integrated its application into Apple (iMessage) messenger in October 2016," the expert says.
He also added that this fall iPhone owners will be able to transfer money through iMessage directly through their payment system, Apple Pay, which he believes is the safest for performing transfers. The speaker suggests that Apple Pay, Android Pay, Samsung Pay services are potentially capable of becoming leaders in the C2C market regarding both convenience and security. Meanwhile, transfers through payment system websites like Mastercard MoneySend, through social networks and other channels will have a limited audience.
Risks and Security
ATFBank believes that the current form of money transfers through social networks is quite standard and safe. "However, this issue should not be viewed linearly because it comprises several components. The first is the safety of the transfer itself and the second is the safety and security of the specific account's data," the bank added.
Since users often distribute a lot of personal information, which can be used by intruders when hacking accounts, the personal data of users can become accessible to intruders, and then the safety issue concerns not the transfer itself, but the use of the user's personal data for unauthorized operations. In this case, bank SMS notifications reduce the risk of funds loss.
Mr. Konyaev states that even confirmation of a transaction with an SMS code cannot guarantee absolute security. Since the computer is at risk of being infected with malware, and viruses on mobile devices can intercept SMS from the bank (first and foremost on Android OS devices). Experts believe that no less than 40% of devices based on this OS are infected with some malware.
"To date, no serious cases of fraud regarding transfers in social networks have been detected, but potential risks exist. As the service develops and the number of users increases, the attention from intruders will also grow. However, transfers through social networks do not, in essence, increase or decrease the risks of illegal operations. The user bears the same risks as when using another money transfer system," ATFBank believes.
In the event of unusual dynamics (for example, a sharp increase in transfers), the bank can call the client to make sure that the transfers and payments are being made by them. But it should be noted that in this case the bank monitors the safety of the client's payments, but does not control the payment by the client themselves. "Of course, there are risks for each party, but most likely, the entire responsibility will ultimately be shifted to the client," Mr. Konyaev suggests.
To reduce the risks of personal fraud, experts advise following standard security rules: create complex passwords, change them regularly, use modern antivirus software, apply two-factor authentication, be more careful about publishing data on your location, payment preferences, and other personal information. Also, do not pass bank card details to third parties. To reduce risks, it is recommended to use a separate card for online payments, better to use a virtual one, and carefully check the recipient of the transfer.
Mr. Konyaev advises not to save card data in "templates,” be cautious about login information for network access, and be attentive to various requests concerning this service. "Security is comparable to all C2C services. If the client does not save their card data, this increases security because the account can be hacked. Plus, neither party discloses their card details to the other side," added AO "Nurbank".
Experts from ATFBank warn, "When using transfers through social networks, do not forget about fake accounts. Users need to be vigilant, as the new service may attract fraudsters. In such cases, money can go to the owner of a fake page and it will be impossible to return it since such an operation will be considered standard, authorized by the user, and cannot be disputed."
AO "Nurbank" also does not exclude that the client's entered card details can be hacked and used by hackers: "On the one hand, when making transfers in the "VKontakte" social network, none of the transaction participants discloses their card details, which primarily protects the recipient of the funds. But at the same time, "VKontakte" allows you to save card details when making the first payment, which is not safe at all, as compromising login details to access the social network to subsequently use the saved card data objectively does not present significant difficulty for intruders."
In conclusion, specialists summarize that any services for micropayments, whether card to card transfers, mobile wallet transfers, or transfers using a personal cellular network account, including social networks, remain a significant problem for law enforcement agencies. Illegal operations are carried out using them (drug distribution, sale of stolen goods, etc.).