CardNotPresent.com: Report: Merchants Investing More in Mobile Payments but Lagging on Mobile Fraud
Mobile fraud is growing, but merchants are falling behind in their efforts to prevent it, according to a new survey from CardNotPresent.com, Kount and The Fraud Practice. The 2015 Mobile Payments and Fraud Survey, the largest ever focused on fraud in the mobile channel, found that more than 60 percent of merchants cannot tell if a card-not-present transaction comes from a mobile device at all and only 17 percent can discern what type of device. Merchants from more than two dozen verticals participated in the survey and the only ones that reported they could identify all transactions that came from mobile devices were gaming/social sites. And, the percentage of respondents who feel mobile requires specialized fraud tools decreased from 32.2 percent in 2013 to 24.2 percent last year, which Don Bush, vice president of marketing from Kount, said indicates "the urgency to make sure mobile fraud protection is in place is lacking."
The survey also found the share of merchants that consider mobile transactions equally as risky or less risky than standard e-commerce transactions grew from 49.2 percent in 2013 to 58.8 percent last year. Nearly one-third of merchants plan to add no additional tools or services to combat fraud in the mobile channel while more than 37 percent plant to add mobile POS systems, 27 percent plan to add mobile apps for online shopping and 18 percent will create dedicated mobile web sites.
"As barriers to mobile adoption continue to fall and mobile payments of all kinds surge, a green field is emerging for fraudsters," said Steven Casco, CEO of CardNotPresent.com and the CNP Expo. "What was once not worth their time is becoming very lucrative and companies throughout the e- and m-commerce ecosystem are just beginning to understand how vulnerable they actually are. This report is the most comprehensive treatment of attitudes toward the mobile channel available, examining how merchants and service providers are trying to protect it and how fraudsters are attacking."
Download the entire report for free here. In late May, look for a Webinar featuring authors of the report from CardNotPresent.com, Kount and the Fraud Practice as they dive into the details of the findings.