A lock on the front door doesn’t mean a building is safe if the windows are wide open. The same applies to digital payments. Businesses often assume that as long as transactions are encrypted, their money and customer data are protected. Unfortunately, hackers have proven otherwise.
Even companies that use strong encryption have suffered a payment processing breach when attackers found weaknesses in the systems around it. These incidents show that while encryption makes data harder to steal, it can’t prevent every type of attack.
Let’s take a look at what payment security encompasses and how businesses can build stronger defenses beyond relying on encryption only.
What Does Encryption Do?
Encryption works like a secret code. When you type your credit card number into a checkout page, encryption scrambles that number so that anyone trying to intercept it can’t read it. Instead of seeing “1234 5678 9012 3456”, a hacker would see meaningless characters.
This makes encryption one of the strongest tools in payment security. It helps keep sensitive data safe as it moves between your customer’s browser, your business, and the payment processor. Without encryption, stealing payment information would be as easy as listening in on a conversation.
But encryption isn’t perfect. If a hacker breaks into a system before the data is encrypted, they can steal it in plain text. If they find a way in after it’s decrypted, they can still use the information.
Lesson to learn: Encryption is a part of secure payment processing, but there are other elements to consider.
What Do We Think Encryption Is Synonymous With Security?
Encryption has become a buzzword in security. Payment processors, banks, and even consumer apps highlight it in their marketing. It sounds strong and final. For many business owners, it creates the idea that once payments are encrypted, nothing can go wrong.
In reality, things are more complicated. Encryption is only one piece of a much bigger puzzle. Hackers know this, which is why they rarely waste time trying to break encryption itself. Instead, they look for easier ways in.
That could mean targeting an employee with a phishing email, slipping malware into a payment system, or exploiting a weak spot in the transaction code.
Some of the most damaging breaches in recent years happened in companies that already used strong encryption protocols. The attackers didn’t need to crack encrypted data because they found other doors left open.
Lesson to learn: Encryption builds trust, but assuming it makes systems completely safe leaves businesses vulnerable to other attacks.
Where Payment Software Is Vulnerable
Hackers know they don’t need to attack encryption directly if they can find a weak spot in the software around it. Payment systems rely on many moving parts: Websites, apps, shopping carts, APIs, and third-party integrations. Each of these creates potential risks.
Outdated software is one of the biggest risks. If a company doesn’t patch its tools, hackers can use known flaws to get inside.
APIs, which connect payment systems to other apps, can also be a target if they are not configured correctly. In some cases, attackers find ways to send fake data through an API or trick the system into granting extra access.
Another weak point you can’t afford to ignore is authentication. If payment software doesn’t enforce strong login controls, hackers can break in with stolen or guessed passwords. Once inside, they can bypass the protection that encryption provides and reach sensitive systems and data.
Lesson to learn: Businesses must secure every layer of their payment software, from code updates to API connections, to stop hackers from slipping through unnoticed.
Insecure Coding Practices
Many payment systems and merchant platforms run on JAVA. It’s a powerful programming language, but like any tool, it can also create problems when used carelessly. One common issue comes from a feature called reflection, which allows software to examine and change its own code while it’s running.
In theory, reflection gives developers flexibility. In practice, it can be dangerous. Insecure reflection happens when a program accepts untrusted input and then runs it as a code. Hackers can use this to make the application do things it was never meant to do, such as exposing sensitive data or changing how transactions are processed.
For example, if reflection is not properly locked down, an attacker might inject commands that let them bypass security checks. They could even gain full control over the system. In a payment environment, it’s the kind of activity that could mean rerouting funds, altering transaction records, or stealing customer details.
This is why experts warn about insecure reflection in JAVA applications. It shows how one coding decision can create an entry point for attackers, no matter how strong the rest of the system is elsewhere.
Lesson to learn: Developers should avoid unsafe coding practices and test their applications for vulnerabilities before they go live.
What Can Merchants Do?
Most business owners are not developers, and they don’t need to be. Still, there are practical steps merchants can take today to strengthen payment security without being actively involved in developing payment processing systems.
Firstly, you want to work with payment providers that take a full-stack approach to security. It is worth asking questions about how they test their systems, how often they patch software, and the monitoring tools they use. As a rule of thumb, a trustworthy provider should be able to explain their process clearly.
Secondly, you need to keep your own systems up to date. This includes your website, shopping cart software, and any plugins you use. Hackers often go after businesses that run outdated versions because they already know where the weaknesses are.
Thirdly, your team needs to be part of your defense. It’s important to train employees to recognize phishing attempts and suspicious requests.
Finally, you need to review your access controls. Not everyone in your business needs to view or change sensitive payment data. Therefore, reducing exposure also reduces the risk of an insider threat.
Naturally, on top of that, regular audits and testings are also critical, whether they are managed by merchants themselves or by developers and payment processors. The best way to identify vulnerabiliities is to constantly test for them so you can fix them before it’s too late.
