Report shows mobile payments open consumers to fraud risk

Future of Mobile Payments
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Future of Mobile PaymentsAccording to study results from Gartner research company, Neural Technologies, and others, mobile payments will expose consumers to a significant risk of fraud.

That said, mobile payment remains among the most rapidly growing and exciting new technological developments, and it is expected to take off in the very near future. In fact, according to the predictions of Gartner, by 2014, the worldwide value of mobile payment services will be $245 billion.

However, along with the growth of the use of the service, the risk of fraud will also rise. It is predicted by the research companies that held the study that this technology will present a very appealing vehicle for their various forms of identity theft and money laundering scams.

Gartner released a report that explained that as a result of the tremendous amount of growth in mobile device and smartphone technology use, along with the jump in mobile commerce use, and the associated fraud attacks related to this technology, “using mobile fraud detection in mobile commerce environments is an imperative.”

Equally, Neural Technologies added that in order to properly understand the magnitude of the risk involved with the use of mobile payments, it is necessary to understand the different types of mobile payment products that are available and the technology of the devices that are necessary for their use.

These include:

• Mobile payments
• Mobile money
• Mobile banking services
• Mobile over the air payments
• Contactless mobile payments

A comprehensive study was performed by researchers at Neural Technologies who produced a report that was eleven pages long, regarding the services and technologies involved in mobile payments. Telecom operators have access to this report for free, so that they may review the recommendations and suggestions held within it for the reduction of fraud through mobile payment.

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