Retailers are taking mobile security more seriously as commerce continues to change
As retailers become more interested in mobile commerce, they are also beginning to become more interested in the matter of mobile security. The mobile sector has become a popular place for fraudulent activity and such activities could be having a significant financial impact on businesses and consumers alike. LexisNexis has released a new report that focuses on the impact of fraud and sheds some light on how fraud is growing throughout the retail sector.
Merchants are being exposed to new mobile-centric threats
The report notes that mobile penetration among retailers is growing rapidly. Approximately one in 10 retail merchants accepted mobile payments throughout 2013, a 50% increase over what it had been in 2011. Approximately 25% of retailers expect to begin accepting mobile payments this year. As merchants become more supportive of mobile commerce, they are beginning to become more exposed to the threats that exist within the mobile space. According to the report, three in five fraudulent mobile transactions were credit-based with 23% being attributable to debit cards.
Mobile browsers likely to remain favorable to merchants
Mobile web browsers are currently the most popular way to accept mobile payments among retailers. These browsers allow consumers to make a purchase from their mobile device without having to rely on NFC technology or applications that make use of proprietary software. The report suggests that retailers are aware that mobile browsers are more risk prone than mobile applications, but they are not likely to change their focus on browsers in the foreseeable future as they make mobile commerce more accessible to consumers.
Consumers may need to take aggressive steps to protect themselves as well
The report suggests that retailers should take more action when it comes to protecting themselves and consumers from mobile threats. Making payment authentication more robust is expected to mitigate future risks that retailers face. Keeping track of fraudulent activities and examining security trends are also expected to yield some results. Merchants cannot guard against every threat, however, and consumers may also need to take steps to protect themselves and their financial information from those that would exploit it.
