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AI in Data Security: How to Ensure Secure Online Transactions?

Written by Ryan Robinson | October 25, 2024 12:43:43 PM Z

Protecting your data and customers has always been important. But, strict regulations have emerged in the past few years.

Now, it’s non-negotiable. As a security professional, you aim to comply with these rules. The goal? Protect your organization against all cyber risks.

Financial transactions are especially vulnerable processes that need to be protected. One benefit of these tools is that they stop fraudulent transactions. This article covers the topic of and application of AI in data security and online transactions.  

Types of online transactions

According to this Markets Report, artificial intelligence software has risen. In fact, throughout 2024, AI technology has pumped up the stock market. The trend will continue upwards, and new technology emerges every month.

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Because of this, cybersecurity experts continually develop new security tools. AI in data security examples include:

  • Phishing detection
  • Endpoint protection
  • Insider threat detection
  • Vulnerability management
  • Automated malware generation

It’s essential to define your business to understand what you want to protect against. Customers often pay via credit cards or bank transfers for e-commerce stores. Peer-to-peer transactions between individuals are also popular with Venmo or PayPal.

Cryptocurrency transactions are often considered highly secure. They are anonymous, transparent, and immutable. While the lack of financial institutions can be positive, it’s also problematic. If an account is stolen, getting the funds back is harder.

In all situations, your goal is to detect cyber threats before they cause damage. You can do this by monitoring suspicious activity, but implementing secure hardware and software solutions is also essential. 

To determine what measures to use, you need to understand the nature of the transaction types. E-commerce and cryptocurrency transactions have different potential vulnerabilities. 

However, there’s more to this than the type of payment. Metrics such as transaction volume and transaction value are also quite important. Confirming the legitimacy of transactions is impossible if there are thousands of them. 

This can then better guide you to choose better security measures. An automated AI monitoring tool can be a great choice in this case.

 

How AI benefits online security

Cybersecurity has always been a sophisticated field of IT. It’s an intersection of different disciplines. To be a good cybersecurity expert, you also need to know about:

  • Computer networks
  • Programming
  • Hardware

Nowadays, knowledge of AI in data security is another essential skill for cybersecurity experts. It helps security teams detect fraudulent activities. How? AI algorithms analyze vast amounts of data to detect patterns. The results are then used to detect real-time problems. 

 

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Machine learning models can recognize said activities and flag them. The software makes this easy for anyone. It has filters and risk levels, marking transactions as suspicious if needed.

For example, Shopify can notify you if it recognizes problematic transactions. The filters and flags vary from one solution to another. We’ve also seen AI in action way before the recent hype. AI is used in biometric authentication, such as facial recognition and fingerprint scanning.

Let’s look at another example. 

When you set up a joint checking account, security should be a top priority. AI can help by monitoring transactions in real time. How? By flagging anything suspicious and protecting your shared finances. 

Regardless of who you share the account with, AI-driven tools add an extra layer of security. These tools can detect unusual spending patterns. It gives you peace of mind that your money is safe.

Last but not least, AI can detect bots and automated systems. Captcha is a great example. This technology detects unnatural movements. AI also helps with behavioral analysis by providing you with evidence.

Role of AI in data security

AI can play an important role in protecting your business and data. As explained, AI is a great tool for recognizing threats in advance. It’s great at analyzing historical data and current trends.

However, it’s also a technology that provides immediate benefits. Specific AI security software can automatically respond to certain threats. This minimizes response time and mitigates damage. 

This should be paired with continuous monitoring. AI provides 24/7 monitoring of systems and networks. In other words, it provides constant defense against potential threats. While a human can go to sleep or you’ll have multiple employees working in shifts, AI is there 24/7.

 

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All the processes that AI helps with are essential in protecting your data. The latest data regulations don’t have mercy in case of a breach. If personally identifiable information is leaked, it can lead to fines. 

It’s even more important to stay compliant when handling payments. Financial information is a sensitive PID category. In other words, the repercussions can be even tougher if there’s a data leak.

Data privacy and security in AI are unparalleled when you pair AI technology with proven security methods. However, establishing high security can take time and resources. 

Tips to ensure secure online transactions - 4 Examples

Cybersecurity is considered as old as the Internet, so it has advanced in the past decades. However, different eras of the Internet had different challenges and threats. For example, the dangers of spam emails aren’t the same now as in the 1990s. 

Here are some of the most applicable tips for companies who operate online. These also apply to those that leverage online payment systems.

Leverage cybersecurity tools

Cybersecurity tools are essential for protecting online transactions. Intrusion detection systems help you recognize threats once they occur. This technology allows you to take swift action to prevent damage.

Besides tools, you should have an incident response strategy. This refers to the way of dealing with breaches once they occur. These strategies must have a clear roadmap that ensures minimal or zero damage. 

 

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Firewalls are also an essential tool. They serve as a barrier between your internal network and potential threats from the Internet. Firewalls can be physical or virtual, and you can set up rules per your desires. 

Anti-malware software is essential for all devices individually and for the whole company. It can help you detect and remove malicious software from devices in the network.

Each of these tools secures certain parts of the online transaction process. For example, firewalls ensure suspicious traffic stays out of your internal network. Anti-malware software prevents hijacked and infected devices from interfering. 

Use strong passwords internally

One of the most critical cybersecurity strategies is to use solid and random passwords. Your company can consist of hundreds of devices. However, even if you’re using the most expensive and helpful cybersecurity tools, weak passwords can cause problems.

Imagine a manager with an account with access to valuable resources who never bothered to change the default password. Hackers can then leverage this information to intercept transactions. They might even access employee and customer accounts. 

Implementing a company-wide policy can prevent weak passwords from causing harm. You can also encourage employees to use randomly generated passwords. These should contain a mix of lowercase and uppercase letters, symbols, and numbers.

 

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To enhance authentication even further, you can implement password managers. This way, you can ensure that log-in processes are streamlined and passwords are strong enough. You can also use AI to generate passwords.

Track your traffic

Leveraging traffic monitoring tools like Wireshark can be extremely helpful. They can help you detect unusual patterns or unauthorized access attempts. Cybersecurity analysts need network logs to review them and spot anomalies.

 

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Regular network log audits can lead to better security in the long run. As mentioned previously, AI can help immensely with this. Instead of manually reviewing these logs, AI can do it for you. It can automatically detect deviations from standard traffic patterns. 

 

Cover the basics

While using AI to help you with security is great, it’s essential to cover the basics. Your software needs to be updated to the latest stable version. Outdated software poses a significant security risk.

Implementing policies to ensure strong passwords is excellent. However, it is advisable to train your employees in the basics of cybersecurity. This way, they can recognize and avoid threats on the Internet. They should also learn how to create and store strong passwords as part of the training.

 

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If all else fails, you don’t want to lose precious information. To protect against worst-case scenarios, regular backups should be conducted. 

AI is very helpful in modern data security

Innovative technology, such as AI in data security, can undoubtedly move your business forward. In cybersecurity, AI can help you detect threats, prevent fraud, and perform behavioral analysis. However, this technology is still fresh.

There can be many false positives or mistakes. Keep an eye on the latest developments in the AI industry. However, it’s still important to cover the essentials of security. This article covers some of the most common cybersecurity tips. 

Whether you’re a decision-maker, entrepreneur, or security specialist, embrace AI technology. But don’t implement it just for the sake of novelty. Instead, thoroughly examine your situation and then make an informed decision.

AI is here to stay. Invest in it today to reap the benefits. You won’t regret it, and neither will your bottom line.