Technical risks of cross-border e-commerce payment and settlement and their countermeasures

Technical risks in cross-border e-commerce payment and settlement mainly include the following categories:

1. Account Stealing

Account theft is an account technical risk and is the most common risk faced by the third-party payment industry. Its main manifestations are library stuffing, library washing and library dragging:

• Credit Stuffing: Through a large amount of user data analysis, we can learn the same registration habits of users, and use these habits to try to log in to the target website and steal user information.
• Washing database: Decrypt and analyze illegally obtained data using brute force cracking methods such as dictionary tables and technical methods such as using rainbow tables to crack hash algorithms.
• Drag library: Use system vulnerabilities, third-party component vulnerabilities, SQL injection attacks and other means to steal registered user information.

2. Information leakage

Cross-border e-commerce payment and settlement involve sensitive information such as ID cards, bank cards, and passwords. If a platform (such as PayPal) is attacked by hackers due to system vulnerabilities, and the leaked information is used by criminals, it will cause losses to users. In addition, information such as payment amounts and specific business types of users and merchants are used by various institutions to determine users’ credit status. Once it is mastered by criminals, the harm caused cannot be underestimated.

3. Brushing orders

Fake orders are also one of the technical risks of cross-border e-commerce payment and settlement, including but not limited to:

• Small account brushing: Most of the small accounts are obtained from professional brushing institutions, and a small part are registered by the merchants themselves. Merchants usually avoid using their own registered accounts to avoid being banned.
• Virtual machine brushing: Merchants create large amounts of transaction data by using virtual machine equipment to simulate access from multiple machines on one physical machine.

Countermeasures

In response to the above technical risks, cross-border e-commerce importers and exporters can take the following measures to deal with them:

(1) Build a technical risk structure

Enterprises can build a technical risk management structure through a combination of five major security modules: account security, transaction security, seller security, information security, and system security, prevent account theft and information leakage, and reduce risk by controlling transaction data and other means. Possibility of trading technical risks.

(2) Review transaction information

In the process of cross-border e-commerce payment transactions, payment institutions should strictly follow relevant laws, regulations and guidance to review the authenticity of the transaction information and the identities of both parties. Information interaction links can be appropriately added, information from both parties can be retained for future reference, and timely warnings can be provided for abnormal transactions and accounts. Relevant departments should also conduct regular spot checks and review the identity information of both parties to the transaction, and penalize third-party payment institutions that do not strictly implement the regulations. At the same time, we will formulate scientific supervision plans, promote cooperation between payment institutions and customs, industry and commerce, and taxation departments, establish a cross-border trade information sharing platform, and improve monitoring efficiency.

(3) Establish an anti-fraud system

Enterprises can manage and control technical risks by establishing an anti-fraud system that is data-driven. Different from traditional anti-fraud systems, cross-border e-commerce payment anti-fraud systems should have powerful implementation models, flexible risk rules and professional anti-fraud judgment standards. Third-party payment institutions should also strengthen risk sharing and cooperation mechanisms within the industry to jointly improve the overall technical risk prevention and control capabilities of cross-border e-commerce payment transactions.