Cybercrime Is Rising Alongside Digital Payments

As digital payments become more common in everyday life, the payments industry faces a growing challenge: cybercrime. These tools offer speed and convenience, but also introduce new vulnerabilities that criminals are quick to exploit.

A recent report from Visa outlines current trends in payment-related cyber threats. From ransomware and enumeration attacks to card-not-present fraud and spoofed merchants, fraudsters are using increasingly advanced tools to target both retailers and consumers.

The Digital Shift Has Created New Opportunities for Fraudsters

Since the COVID-19 pandemic, consumer behavior has shifted toward digital and contactless payments. Peer-to-peer platforms like Zelle have expanded rapidly, but that growth brings increased risk. Zelle has faced criticism from lawmakers and users over scams that trick people into transferring money. While these cases impact less than 1 percent of total transactions, the high user volume means the number of incidents is rising.

Visa reports that fraud rates are climbing, especially in card-not-present transactions, which account for 58 percent of all fraud and breach investigations. Physical card fraud is also increasing. Skimming devices at retail locations are more common, showing that both digital and in-person channels are vulnerable.

The Role of AI in Attack and Defense

Visa’s biannual threats report highlights how artificial intelligence is influencing cybercrime. Tools like ChatGPT and other language models are being used to create malware that can steal data or lock down entire devices. This makes it easier for individuals with limited technical skills to launch complex attacks.

Ransomware incidents rose 91 percent in March, often tied to stolen credentials and unpatched systems. Enumeration attacks, which involve systematically guessing payment information, increased by 40 percent in the first half of the year.

What the Industry Is Doing to Respond

Payments companies are strengthening cybersecurity defenses. Visa reports it blocked $30 billion in fraud in the last six months alone.

Global efforts to improve security are also advancing. Programs like the FIDO Alliance and new EMVCo standards for mobile and contactless payments are helping bring more consistent tools to market. Biometrics, multi-factor authentication, and secure credential management are gaining traction, though adoption in the U.S. remains limited.

What the Data Shows

• Ransomware attacks rose 91 percent in March, mainly due to compromised credentials and system vulnerabilities
• 58 percent of fraud and breach investigations were linked to online merchants; physical fraud is also increasing
• Visa prevented $30 billion in fraud over six months through improved detection systems
• AI is contributing to more scalable and harder-to-detect fraud
• Security tools like biometrics and international standards are growing, but consumer adoption is still behind

Cybercrime continues to evolve, but so do the tools to stop it. Ongoing investment, education, and collaboration across the payments ecosystem will be key to staying ahead.

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