Nassau, The Bahamas, April 3, 2025. The frequency and severity of cyberattacks are increasing globally, critically affecting financial institutions where customer trust is paramount. Despite being frequent targets of fraud, investment in cybersecurity remains insufficient, exposing companies to significant financial losses and reputational damage.ViaCarte, a payment media company, warns that the consequences of a security breach in the payments ecosystem can extend beyond financial losses. According to IBM, the average cost of a data breach amounts to $4.88 million. Additionally, Juniper Research estimates that by 2028, online payment fraud losses will reach $91 billion.
“The sophistication of cybercriminals is outpacing the traditional defenses of financial institutions. Legacy infrastructure and the lack of real-time processing capabilities make it difficult to implement effective fraud prevention solutions, leaving companies in a constant state of vulnerability,” said Eleuren Méndez, Chief Risk Compliance Officer and Regulatory Director at ViaCarte.
The main costs associated with the lack of cybersecurity include:
Direct financial losses: Cybercrime in the payments ecosystem affects not only financial institutions but also merchants and customers, generating significant economic losses and jeopardizing companies' operational stability.
Class action lawsuits: If a security breach results in customer losses and the company is found to have failed to protect the data adequately, class action lawsuits may arise. The cost of defending and resolving these cases can easily reach tens of millions of dollars.
Loss of reputation and intellectual property: Data breaches can damage a company’s reputation, affect its stock value, and undermine its market competitiveness. After a cyberattack, executive-level dismissals and public promises of improved security are common; however, companies and victims face the consequences of reputational and intellectual property loss for years.
Psychological harm: Victims of cyber fraud may suffer emotional trauma, online harassment, and psychological abuse. The exposure of confidential data can lead to threats, defamation, and persistent harassment, affecting victims’ mental health.
Breach fatigue: Repeated exposure to cyberattacks can make consumers indifferent and more vulnerable to future attacks. This “breach fatigue” creates a vicious cycle where people lower their guard, increasing the risk of falling victim to fraud.
In the payments industry, financial institutions must protect cardholders through a proactive approach that continuously monitors the dark web and alerts users if a confidential digital asset is compromised. According to PYMNTS Intelligence, 25% of executives from institutions with assets exceeding $500 billion consider fraud complexity a key barrier to ensuring data security.
“When cybersecurity is lacking, consumers end up paying the highest price. While access to digital payments drives financial inclusion and economic growth, the fear of fraud can weaken trust in these platforms and the system as a whole. Ensuring secure transactions requires strengthening both protection and cybersecurity education, which calls for a coordinated response from all players in the financial ecosystem—banks, payment providers, insurers, and merchants—to identify and prevent various forms of cyber fraud,” concluded Eleuren Méndez, Chief Risk Compliance Officer and Regulatory Director at ViaCarte.
A Proactive Response
In the face of a growing cyber threat landscape, ViaCarte, in collaboration with Digimune, developed Identicate to address the limitations of traditional fraud defenses, which have proven insufficient against an increasingly sophisticated cybercrime environment. This solution combines real-time monitoring and instant alerts to detect suspicious activity before fraud materializes, providing more proactive protection for digital transactions.
“With the rise in cybercrime, the financial services sector has become the most frequent target due to the rapid growth of digital commerce and banking, especially after the pandemic. Therefore, it is essential for leading financial services organizations, such as ViaCarte, to proactively integrate monitoring, prevention, and recovery measures against cybercrime. We are proud that our comprehensive solutions are part of ViaCarte’s consolidated offering for the future,” said Simon Campbell-Young, Director of Digimune.
Identicate also addresses a common challenge faced by consumers dealing with debit card fraud, as in many countries, they are required to return physically to the issuing country to resolve disputes. The solution is designed to eliminate these barriers through continuous monitoring and an automated response, ensuring the protection of transactions on a global scale.The collaboration between ViaCarte, Digimune, Norton, and Lloyd’s Bank reinforces the importance of a comprehensive approach to protecting the digital payments ecosystem. The implementation of advanced solutions like Identicate reflects the need for all players in the financial sector to work together to address the growing risk of cyber fraud.
About ViaCarte: ViaCarte is a world-class payments media company licensed to issue Visa and Mastercard. With high card limits, hybrid card technology, industry-leading cybersecurity, and extensive loyalty benefits, ViaCarte is redefining the payments experience. The company offers white-label card, wallet, and benefit programs, allowing businesses to customize their financial tools to match their brand identity. Supporting payments in over 135 currencies and 111 countries, ViaCarte delivers an intuitive, secure, and seamless financial journey through its advanced API integration, web interfaces, and state-of-the-art infrastructure. For over 15 years, ViaCarte has pushed fintech boundaries, ensuring that every transaction is fast, reliable, and built for the future. For more information, contact at or visit www.viacarte.com or [email protected].
