Mobile fraud is becoming a problem for merchants that want to engage mobile consumers
Mobile commerce is quickly establishing itself as one of the most powerful forces in the commerce sector, powered by the growing number of consumers that have smartphones and tablets. There may be a problem threatening the continued growth of this sector, however, as many businesses may have a lack of awareness about fraud. According to a recent study from Kount, many of the companies that have involved themselves in the mobile commerce space are somewhat misinformed about matters of mobile commerce fraud.
Study shows that majority of merchants are not prepared to address mobile commerce fraud
The study from Kount found that 60% of businesses involved in the mobile commerce space are uncertain about the growing risk of mobile fraud. Merchants are lacking the knowledge they need to address issues concerning fraudulent mobile transactions, and this could be placing them in a position to fall victim to regulations that are shifting liability for such fraud away from card issuers and onto them. The study notes that many merchants do not have the tools in place to address issues of fraud, with less than 40% of merchants having the ability to respond and track fraud that is committed over mobile channels.
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Companies lack the tools needed to combat instances of fraud
Many companies have experience with the e-commerce space, but the anti-fraud tools used for e-commerce cannot be applied to the mobile commerce sector. As such, new solutions are being produced to combat the issue of fraudulent mobile payments. New ID authentication, device authentication, and other such solutions are becoming more available and offer merchants a way to prevent fraud or effectively track it.
Merchants need to take fraud seriously if they want to find continued success
The majority of merchants are focused on expanding their presence in the mobile commerce market. In doing so, some companies may be exposing themselves to significant risks due to a lack of focus on security issues. Merchants will need to become more serious about mobile fraud prevention if they want to continue finding success in the mobile commerce space.