Retail TouchPoints Blog: Mobile Fraud Prevention Steps that will have Consumers Coming Back for Seco
As most Americans are breaking out the good china and canned pumpkin pie mix in anticipation of Thanksgiving, many others are preparing for another popular November tradition: The annual Black Friday and Cyber Monday shopping rush.
And much like Uncle Gary scooping his third heaping helping of yams onto his plate, Americans are planning to over-indulge on the extreme discounts and “door-buster” deals retailers will be offering this year.
While many Americans will opt for the tried-and-true ritual of gathering outside brick and mortar stores in the pre-dawn glow to battle over merchandise, more and more shoppers are opting for the more sedate, yet equally cost-effective option of bargain shopping online.
In fact, Adobe predicted that online sales on Black Friday will grow 28% to $2.48 billion, while Cyber Monday online purchases will hit a whopping $2.6 billion this year. However, perhaps the most important trend will be the growth of mobile shopping, which some retailers predict will account for up to 30% of all online sales during the two busiest e-Commerce days of the year.
Unfortunately, like each additional spoonful of yams, every mobile purchase could come with a risk. Mobile fraud is on the rise and the sheer volume of transactions that occurs on mobile devices around the holidays means great potential for transaction fraud.
According to Kount, nearly one third of merchants see mobile as a riskier commercial channel than standard e-Commerce, an increase of 24% over last year. Although more retailers than ever before are accepting some form of mobile payment, they are relying on fewer mobile-specific fraud solutions. This is especially alarming given the expanded use of mobile point of sale hardware in retail store locations.
If we needed an example of just how damaging transaction fraud and identity theft can be for retailers, last year’s holiday season certainly provided it. Here are a few recommendations for retailers to help keep mobile transactions secure this holiday season and keep consumers coming back for more:
- Step up identity verification: Mobile merchants often view identity theft as the most critical fraud prevention issue. Consider taking steps like device verification to mitigate that risk.
- Stay on the cutting edge: Keep up to date with new security technology, product updates, and regulatory changes.
- Security is in the eye of the beholder: Once you have made sure your site is secure, include a secure logo on checkout pages to boost customer confidence.
Source: Retail Touchpoints Blog.