Consumer behavior is changing rapidly right now. As stated by Google, 67% people used more than one device per person to shop online. Consumers would expect their device to “do it all” such as ordering goods to even watching television. And this behavior makes the merchant to think about the role of mobile in their business and what impacts that the business can get and… losses because of fraud.
These are the terms that all merchant must be familiar with:
Mobile Transaction Data
If there’s a sale, then there’s a fraud and it’s common. They also put the “hidden cost”, thus fraud will be more expensive compared to face value. Data released by Kount in 2014 shows that mobile gets $3.34 in hidden cost for every dollar of fraud. Compared to online fraud, they only get $2.62 for every dollar of fraud.
Also Read: Tips to Avoid Chargebacks on Online Card PaymentsMerchants should be more careful, warns Kount.
Mobile Transaction Fraud
The Kount says that the people uses mobile phone for the fraud transactions; use mobile device at the physical point of sale, use mobile as point of sale, do some purchasing on platform of mobile payment, direct carrier billing and use closed/open-loop mobile for payments. In fact, 7 out of 10 merchants believe that mobile transactions need their fraud prevention practices.
Mobile Payments Fraud Data
As human beings, we tend to do mistakes and we can relate with this point. According to Kount, 34% users never lock their device while 34% set four digit screen lock and the rest use such a usual code which is digits 1234. Fraudsters do have their own online marketplace that gives them advantage to exploit mobile, as specified by Kount.
Also Read: Benefits of 3D Secure Payment for Merchants and Customers Mobile Payments Fraud problems & How to solve it
Keying in secure information about ourselves can be a little difficult and it may result in mistakes that will impact authentication. This is because some mobile devices did not save all information immediately after one-click purchasing. Pairing geo-location – a tool that detect the location of consumer with chargeback notifications on the back is a good combination.
Chargeback notifications allow communication between customers and merchants so that merchants can always solve problem that happen with the customers.
When we register for something, we will get the verification message and fraudsters have found their ways to exploit the information where they do phone porting, resulting request of the number reassigned or forwarded to other devices.
In order to solve the problem, velocity controls give merchants access to monitor the average velocity of transactions and set limits on the credit card – whether the credit card can be used daily, weekly or just monthly.
When it comes to security controls and methods, there would be no easy way to protect any confidential information. As a responsible merchant, it is your responsibility to analyse available tools and choose the best that can serve the fraud protection securely. NIST, FFIEC and 3DS 2.0 are really recommended when it comes to conducting an analysis.
Conclusion
Technology in mobile is shifting fast and shows no signs or pattern that it will slow down. Since technology is far beyond us, there will be no mistakes that more fraud will take place in the future. Customers must be more careful in order to give something valuable to someone else.
Mobile channel will continue to increase, achieve a lot of customers and boost the sales. Successful merchants will give the best security for their customers, in all channel and transactions.
| About the Guest Author:
Nabihah Jasri is an intern researcher for a marketing department in a
Fintech company.
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