Report: Merchants Unsettled on How to Attack Fraud in the Mobile Channel


Merchants have embraced mobile commerce, but in the rush to open a new and increasingly lucrative sales channel, many have ignored the special challenges mobile presents from a risk management standpoint, according to the results of a new study released today by, Kount and The Fraud Practice. The 2016 Mobile Payments & Fraud Survey found that while more merchants than ever support mobile transactions (82 percent this year compared to 69 percent last year) more than 40 percent have no idea what share of their total fraud losses occurred on a mobile device.

"There's a bit of a gold rush going on and no one is worried about packing a coat for winter in the Klondike," Rich Stuppy, COO at Kount, told "There's confusion around whether or not companies even need to take a different approach to risk. Will a merchant's existing tool sets work or do they need special customized tools?"

While Stuppy and Kount advocate special attention to and tools for fraud in the mobile channel, merchants aren't so sure. The confusion he referenced was illustrated in the survey. Forty-one percent of merchants acknowledged m-commerce was "somewhat riskier" or "far riskier" than traditional e-commerce, yet only 20 percent agreed that mobile requires specialized fraud tools, down from 24 percent last year and 32 percent the year before.

"As barriers to mobile adoption continue to fall and mobile payments of all kinds surge, merchants are focused on the customer experience perhaps to the detriment of solid risk management principles," said Steven Casco, CEO of and the CNP Expo. "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 highlighting vulnerabilities in their thinking fraudsters could leverage."