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An article relating to this blog post on Finextra:
A UK teenager who ran a Web site retailing stolen credit card details and cybercrime tools has been jailed for five years.
04 Mar 2011
As I read this piece about a teenage cybercrime forum founder being jailed, the above thought came in to my head - "what do the credit card thieves use to pay each other online?". Assume they can't use plain old cash, because all of the credit card numbers
are being bought and sold through the internet - so there must be another payment mechanism that these people are using, and that they themselves trust?
And trust is the issue here. There are lots of new startups coming out with apps and processes to allow P2P etc; would you be willing to register with an unknown company, and "handover" your financial information - whether it be credit/debit card numbers,
or bank account details - to allow you to send and receive money?
Does this mean that bank's are missing out though? I believe so - I'm sure that when asked who they would trust to move funds for them, banks and similar financial institutions would come out fairly high on the list.
I've blogged in the past that bank's should be taking advantage of their established payment networks, and offering [all of] them as channels for their customers to use.
In the meantime, how long will it be before we read a report of criminals being sentenced for setting up a fraudulent P2P network, with corresponding mobile apps et al?
29 Jul 2010
This post is from a series of posts in the group:
A discussion of trends in innovation management within financial institutions, and the key processes, technology and cultural shifts driving innovation.