PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

Why Super Apps are Super Targets for Fraud and Abuse

Justin Lie by Justin Lie
November 18, 2021
in Fraud Risk and Analytics, Industry Opinions, Mobile Payments
0
Why Super Apps are Super Targets for Fraud and Abuse

Why Super Apps are Super Targets for Fraud and Abuse

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

Super apps are a way of life in the East. From WeChat to Alipay, the rise of all-in-one apps has resulted in billions of people carrying out a large part of their mobile activities from a single app. Whether it’s messaging friends, ordering groceries, ridesharing, or banking, super apps have it all. But they haven’t entirely made it to the West. Whilst there is some adoption in Latin America, Europe, the U.S. lags behind. But this will soon change. Buzz is building among some big financial giants and tech companies such as Paypal, Uber, and Facebook – who have all hinted at going super.

These umbrella apps offer exceptional convenience to the consumer. Unfortunately, they’re convenient for fraudsters too. So, as the concept picks up steam and companies enter the super app fray, are they prepared for the fraud-related risks that follow them?

Why fraudsters target super apps

The more services an app offers, the more opportunities that exist to exploit it. For example, if you’re a ride-hailing app launching an e-wallet, you might want to run a promotion to try and attract fresh customers. However, fraudsters will now be able to target your e-wallet and any associated promotions, not just your ride-hailing function. 

Mobile app fraud is also cheaper to carry out and less noticeable than online fraud and is typically aimed right where the money flows in and out – transactions. This said, mobile app fraud can occur at any point in the user journey, not just the transaction phase. There are many nooks and crannies for fraudsters to hide, and they emerge whenever the opportunity arises.

How fraud happens

Here are a few of the ways that criminals target super apps.

  1. Account takeovers. Fraudsters often take over legitimate accounts using either social engineering or password cracking tools. They can then commit fraud immediately or masquerade as the good guy until they attack. They often make unauthorized purchases, abuse promotions, or take advantage of incentives. 
  2. Fake accounts. Fake accounts tend to be set up using stolen or falsified personal details. Fraudsters will also create many at once so they can maximize the amount of damage done. To do this, they will often use several different malicious tools such as VPNs, GPS spoofers, and emulators to make each account look like it comes from a different device. When you realize an account is fake, it’s usually too late. Fraud has likely been committed.
  3. Referral abuse. It’s widespread, and almost everybody has tried it once or twice. A friend refers you to a service and you both get discount codes. Then your friend refers you again, but you use a different email to register. It’s done often, but technically it’s fraud. Professional fraudsters do this too, except they use malicious tools to create multiple fake accounts to refer themselves hundreds and thousands of times. 
  4. Payment fraud. Today, millions of stolen card details exist on the dark web, often obtained through data breaches or phishing scams. After a fraudster makes a purchase, the real card owner files a chargeback and the merchant loses out on funds and inventory. Left unchecked, this can result in severe financial damage. 

How super apps can stop all fraud and abuse

When fraudsters constantly change their attack patterns, traditional fraud prevention methods are ineffective. Solutions need to be precise, targeted, and adaptable to minimize false positives whilst still stopping fraud. At the same time, implementing over-complicated security measures pushes users away. Done correctly, businesses will see less fraud, more growth, and happier customers. 

The first place to start is by creating a digital fingerprint of every device in your ecosystem. With a fraud prevention solution, this can be done in milliseconds. This device fingerprint can then be used to detect and flag changes to the device that are considered risky. Another important step in determining a device’s ‘riskiness’ involves understanding exactly which malicious tools and techniques are being used. Together, insights like these can help you identify and block any fraudulent activity.

Becoming a super app does come with its risks. As businesses offer added functionality and features, their complex ecosystems become more vulnerable. To dominate the market and focus on profits, you need to detect and mitigate risks before fraud is committed. Otherwise, your super app could lead to super losses. 

Tags: fraudFraud Risk and AnalyticsIndustry OpinionsMobile Appsuper appSuperApps
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily

    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Mercator Advisory Group analysts and industry professionals.

    Must Reads

    live shopping, ebay

    Q&A: eBay Exec on Live Shopping and the Future of Payments

    March 24, 2023
    AI and Biometrics in Regulatory Compliance in Finance

    The Importance of AI and Biometrics in Regulatory Compliance in Finance

    March 23, 2023
    Everyone Benefits from the Real-Time Payment Networks  

    Everyone Benefits from the Real-Time Payment Networks  

    March 22, 2023
    commercial payments

    Optimizing Commercial Payments in the Digital Age

    March 21, 2023
    cross-border payments

    Cross-Border Payments: Fighting
    E-Commerce Fraud Using Data

    March 20, 2023
    fraud, ChatGPT-4

    How to Fight Fraud While Still Enabling a Great Online Customer Experience

    March 17, 2023
    RTP

    Financial Institutions Without an RTP Strategy Risk Being Left Behind

    March 16, 2023
    visa chargeback

    New Visa Chargeback Guidelines Will Be a Game Changer

    March 15, 2023

    Linkedin-in Twitter

    Advertise With Us | About Us | Terms of Use | Privacy Policy | Subscribe
    ©2023 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    Menu
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • Recent News
    • Resources
    Menu
    • Industry Opinions
    • Recent News
    • Resources
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result

      Register to download the Payoneer eBook: