Mobile Fraud And What To Do About Itfwsecure
If you’re a retailer and haven’t yet prioritized the security of your mobile site, you’ll definitely want to rethink that.
By 2019, mobile retail sales in the US are estimated to reach $170 billion, almost double the sales of 2015. Mobile retail, commonly know as m-commerce, presents a complex challenge in maintaining the security of its customers’ data.
The rise of mobile has caused an increase in fraud attacks since the untethered devices offer a larger range of options for hackers to retrieve private information. Mobile fraud takes an entirely new mindset to prevent because mobile browsers do not have the capability to handle extensive plugins. Additionally, the technology for mobile sales is progressing rapidly, and retailers everywhere are struggling to keep up.
Who’s At Risk
Fraudsters tend to go for the weakest link in the chain, not the strongest, making small businesses a key target. Mobile payment options and point of sale systems are providing more business opportunities for small business, but also puts them at a greater risk.
The Importance of Taking Action
Fraud is not only a major inconvenience for online retailers, it’s also very expensive. A study by LexisNexis and Javelin Strategy & Research found that fraudulent transactions cost nearly three times the value of the actual product stolen. The merchant not only loses the product that was stolen but experiences additional costs such as chargeback fees, payment processing expenses, restocking the merchandise, not to mention the administrative costs and fraud investigation.
There are several steps that merchants can take to protect themselves against fraudulent transactions:
- Mobile merchants should thoroughly authenticate card-not-present transactions placed on mobile devices.
- Mobile apps should be equipped with strong authentication tools such as device fingerprinting.
- Fraudulent mobile transactions should be identified separately from online transactions to better understand the risks associated with this channel and to able to effectively brainstorm solutions.
- Merchants should maintain open communication with financial institutions and stay up-to-date on the evolving nature of fraud threats and solutions.
However, these investigative measures tend to bear significant administrative costs that come at the expense of business development and profits. Fraudwatch is a low-cost solution that does all the hard work for businesses to protect themselves against fraud and chargebacks. Fraudwatch’s advanced software runs every transaction through over 12 different tests and will give the business a simple “yes/no” answer as to whether or not the transaction is fraudulent. The most valuable feature it offers though is that every approved transaction is insured. That means that they will cover the cost of any order approved for fulfillment that results in a fraudulent chargeback.
It’s reliable, it’s accurate and it’s flexible. Given the rapid pace in which the mobile channel is expanding, merchants need to keep up. And Fraudwatch takes care of the process from start to finish, leaving business owners with more time to focus on what they do best.