{"id":118048,"date":"2018-09-10T12:00:27","date_gmt":"2018-09-10T11:00:27","guid":{"rendered":"https:\/\/www.transcend.org\/tms\/?p=118048"},"modified":"2018-09-10T12:28:35","modified_gmt":"2018-09-10T11:28:35","slug":"cyber-risks-the-achilles-heel-of-cashless-economies","status":"publish","type":"post","link":"https:\/\/www.transcend.org\/tms\/2018\/09\/cyber-risks-the-achilles-heel-of-cashless-economies\/","title":{"rendered":"Cyber Risks, the Achilles\u2019 Heel of Cashless Economies"},"content":{"rendered":"

Newspapers around the globe are telling us that contactless payments are thriving, cash is rapidly disappearing and cashless society is practically around the corner.\u00a0<\/em><\/p><\/blockquote>\n

\"\"<\/a><\/p>\n

5 Sep 2018 – <\/em>You don\u2019t need cash to pay for your groceries anymore, and don\u2019t be afraid if you forgot to take your wallet with you \u2013 just use your smartphone. Carl Scheible,<\/strong> Managing Director of PayPal UK, summarizes<\/a>\u00a0[1]\u00a0the current situation:<\/p>\n

\u201cWe\u2019ll see a huge change over the next few years in the way we shop and pay for things \u2026 you\u2019ll be able to leave your wallet at home and use your mobile as the 21st century digital wallet.<\/em>\u201d<\/p><\/blockquote>\n

Some are dissatisfied with this state of affairs. In this case, the classical tactic of intimidation becomes the main argument of champions of cashless society. Cash is used by criminals; our children can buy drugs with cash; cash supports the shadow economy and encourages tax evasion \u2013 these are just some of these loud statements.<\/p>\n

Ability to present control as protection is based on constant calls to think about an external enemy, that is terrorists or mafia. This element of moral panic is contrasted with friendly and unobtrusive advertising of digital payments. The newborn cashless society is emerging like the sunrise, washing away these dangerous dirty banknotes with the rays of hygienic and convenient digital salvation.<\/p>\n

This rosy picture is completed by speeches of academicians, economists and futurists that live in green suburbs, fly business class and demonize bills and coins.<\/p>\n

\u201cWithout cash, we would live in a much safer, less violent world with enhanced social cohesion, since the major incentive fueling all illegal activity [i.e. cash]\u2026 would disappear<\/em>,\u201d<\/p><\/blockquote>\n

believes<\/a>\u00a0[2]\u00a0Guillermo de la Dehesa<\/strong>, a Spanish economist and current international advisor to Banco Santander and Goldman Sachs.<\/p>\n

And the trick is working. Cash is being excluded from the official economy, and tellers are watching with suspicion while you are fumbling for coins in your wallet. There is a sign on every other store: \u201cNo cash accepted<\/em>\u201c.<\/p>\n

However, the same system that facilitates the unhampered flow of information and its use for commercial purposes, also provides technically dexterous criminals with almost limitless opportunities to capitalize on their neighbor. How is it possible? Let\u2019s see.<\/p>\n

Why it\u2019s wise to be a little bit paranoid<\/strong><\/p>\n

It won\u2019t take long to figure out why we have become vulnerable to cyber crooks:<\/p>\n