The migration of commerce to many consumers handheld devices, the prospect of smart-devices(fridge, pantry) and with the integration of EMV cards in the U.S. have combined to prompt those who make their daily bread through fraud to increasingly focus on mobility–based transactions. The article seeks to raise the alarm and put forth viable strategies.
However, most sellers have wizened up to online fraud through mobile channels and have started investigating various authentication methods as has been detailed in the graph above. While secure Tokens and Biometric Scans like Fingerprint have been the top choices for most sellers, a far more easier to implement and cost effective method of unique device ID also makes it to the top three.
Prevention is better than cure and sometimes to stop the criminal you have to think like one. This one is where however the community seems to be very divided as we see that only 20% of sellers think that very sophisticated and specialized tools are required for mobile online frauds. The remaining are at odds with 44.5% considering standard eCommerce fraud techniques enough for mobile frauds while the other 35.5% are against the very notion.
Defending against mobile payment fraud will be a varied solution set, dependent on the industry of the merchant, and the risk tolerance of the merchant and customer interaction preferences. Identity verification and credentialing will be a growth area for mobile commerce for the balance of the decade.
Overview by Joseph Walent, Senior Analyst, Emerging Technologies at Mercator Advisory Group
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