DOI: https://doi.org/10.36719/2789-6919/54/52-58
Emin Asadov
Azerbaijan State University of Economics
Master's student
https://orcid.org/0009-0000-7077-0033
eminasadov_education@outlook.com
Security and Risk Management in Electronic Payment Systems
Abstract
In the modern era, electronic payment systems (EPS) have become an integral part of the global economy. Along with their advantages – speed, convenience, transparency and cost reduction – and risk management issues are also of particular importance. The growth of electronic payments has led to an increase in risks such as cyber threats, fraud, data leakage and identification problems. One of the most important areas within the framework of security management is the implementation of cryptological protection, two-step authentication, tokenization, biometric identification and blockchain-based transactions. These technologies ensure the confidentiality, integrity and traceability of payment flows. Banks and financial institutions identify potential threats in advance through a “risk-based approach model” and detect anomalies with “real-time monitoring systems”. The main areas of risk management include operational risks, credit and liquidity risks, information security risks and social engineering attacks. In order to combat these risks, management mechanisms in accordance with international standards – in particular ISO/IEC 27001, PCI DSS, GDPR, and Basel II/III requirements – are applied. Institutional and technological coordination is essential for the continuous development of security and risk management in electronic payment systems. Risks in these systems are not limited to technical aspects, but are also related to managerial, legal and psychological factors. For example, factors such as low user awareness, indifferent attitude to security rules and weak password policies can lead to increased risks. The main goal for financial institutions is to balance technological innovations with security. Artificial intelligence and big data technologies are widely used in the analysis and prediction of operational risks. These systems analyze millions of transactions in seconds and automatically identify fraud and anomalies.
Keywords: electronic payment systems, cybersecurity, risk management, financial technologies (fintech), data protection