How CPaaS Can Strengthen Compliance and Fraud Prevention

Securing Financial Transactions: How CPaaS Can Strengthen Compliance and Fraud Prevention

The CPaaS market is projected to grow from $29.7 billion in 2022 to $52.8 billion by 2026. The exponential growth itself indicates the significance of compliance and fraud prevention in securing financial transactions across industries.

This point from the study adds more value to the point-”Despite this growth, the research conducted by Mobilesquared also reveals that revenue leakage from fraud and platform inefficiencies will cost CPaaS $974.3 million in 2022, rising to $1.4 billion in 2026. The research reveals that the top challenges for CPaaS providers are fighting fraud and achieving consolidation”.- please weave it in

Not to underestimate the rapidly increasing compliance issues, frauds, and cybercrime. Communication Platform as a Service (CPaaS) offers a versatile range of communication solutions to enterprises, including the prominent one being robust security features and mechanisms to strengthen compliance and fraud prevention in diverse sectors such as BFSI , Healthcare, and retail.

This article highlights the ways in which CPaaS can help businesses secure their financial transactions and maintain their privacy and regulatory compliance.

7 Ways CPaaS Enhances Compliance, Fraud Prevention, and Secure Transactions

1. Secure APIs Integrations

CPaaS offers secure APIs that help businesses effectively and securely integrate their communication potential into different communication channels without compromising on security.

Route Mobile offers APIs with security features such as encrypted data exchange, authentication tokens, secure integration, key management, and more.

There are several types of APIs, including voice API, video API, Whatsapp Business API , and many more, for various communication channels and applications that enterprises can manage under one platform with a robust dashboard.

2. Providing Advanced Data Encryption & Security Protocols

CPaaS platform offers advanced data encryption to ensure that data transmitted between the company and its customers is not readable and secure to unauthorized parties. It provides the use of advanced encryption standards (AES) and secure socket layer (SSL) protocols to protect data in transit.

3. Offering Multi-Factor Authentication (MFA)

CPaaS enables multi-factor authentication (MFA), adding an extra layer of security that requires users to verify their identity through various methods such as One-Time Password (OTPs)sent via A2P SMS or voice calls. Due to multi-factor authentication, there is a risk of unauthorized access to all the sensitive financial data and information.

4. Seamless Integration and Enhancing The Two-factor Authentication (2FA)

CPaaS platform provides excellent support in two-factor authentication (2FA), integrating an extra layer of security to offer transactions and user accounts.

Two-factor authentication is a great defense against potential cyber threats, going beyond just the traditional password and implementing additional security for guaranteed safety.

Read More: The Role of CPaaS in Enabling Two-Factor Authentication and Fraud Prevention in Fintech.

5. Compliance With Industry Regulation

CPaaS platforms help enterprises adhere to industry compliance and regulations such as GDPR and PCI DSS, managing data protection, encryption, and customer consent.

Route Mobile’s Verbatim helps businesses simplify customer compliance by reducing call variance and standardizing regulatory compliance. Our CPaaS platform also facilitates compliance within the platform and assists with legal requirements.

6. Enhanced Customer Trust and Loyalty

Consumers rely on fintech companies on the basis of trust, so if they witness an increase in fraudulent activities or phishing activities, they are more likely to leave. In fact, 84% of consumers noticed a rise in scams, indicating risk for fraud and security threats.

Leveraging CPaaS to demonstrate enhanced security and defense against potential threats builds trust and loyalty among consumers.

7. Real-Time Fraud Detection and Prevention

CPaaS platforms feature advanced fraud detection capabilities, including machine-learning algorithms to detect, identify, and prevent potential threats and fraudulent practices in real-time.

This is a remarkable lifesaver for fintech companies to secure their big data and day-to-day transactions. In fact, as per Business Today, 85% of customers will not do business with companies after a data breach.

The platform automatically notifies the users about potential suspicious activities or transactions, leveraging real-time alerts, verification requests, and unauthorized access detection to prevent possible financial losses.

Must Read: The Future of CPaaS: Emerging Technologies and Trends

Conclusion

With the rapidly evolving communication landscape, data security, privacy, and fraud prevention are a top priority for enterprises. Utilizing CPaaS solutions , businesses can leverage the advanced security features and management offered by reputed business service providers like Route Mobile.

Their CPaaS solution has proven to be a game-changer for fintech companies in the implementation of various security protocols and compliances. Contact our team to learn more about our CPaaS solution.

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