Vol. 5, Issue 1, Part A (2023)

Abstract: The use of credit or debit cards have been so widely adopted that they have revolutionized the manner in which consumers transact on financial matters. But cybercriminals have found new ways to exploit vulnerabilities in the financial system with the shift to digital platforms. Card Not Present (CNP) fraud, phishing, skimming, and data breaches are some of the major cybersecurity threats for plastic money that this paper investigates. These threats lead not only to direct financial losses but also to loss of consumer trust and to major regulatory and reputational exposure for financial institutions. The paper dives into what these things mean for the financial industry, cardholders while also talking about the multifaceted nature of these cyber threats. In addition, the paper suggests a variety of defensive procedures, including augmented encryption, multi-factor authentication, user education, and utilization of current AI based menace recognition systems to address these increasing threats and maintain the safety of a unit of digital money.