The Paypers: Mcommerce fraud rate higher on Android devices
Mobile commerce fraud rate is higher on Android devices, a recent report points out.
According to data from Kount, a provider of fraud detection technology, instances of fraud on Android devices was 44% higher than on iOS devices in 2014. The same source mentions that until 2013, fraud on iOS devices was more frequent than on Android, but currently, this has significantly changed.
Findings indicate that Android’s US platform share has increased substantially since 2013. Android’s US platform share increased from 51.5% in June 2013 to 66.1% in June 2015, according to Kantar Worldpanel, while iOS's share declined from 42.5% to 30.5% during the same period. Fraud likely occurs on Android more often than iOS because there are now more Android devices.
The report has also unveiled that mobile fraud will intensify compared to online and in-store. Research shows that merchants have a blind spot when it comes to mobile. In 2014, the share of organizations that believed mobile was far riskier than other forms of commerce was only 15%, and most see it as “just as risky” or “less risky” than standard commerce. A prevailing belief that mobile behaves similarly to other channels could reduce a sense of urgency among merchants to tighten their mobile security, which could invite further fraud.
The study mentioned that fraud moves to the weakest channel. As in-store security tightens, fraud is moving online, and mobile is quickly emerging as the new target. Mobile fraud increased 81% between 2011 and 2015 to date. Meanwhile, non-mobile fraud decreased 50% from 2011 to 2014, and an additional 50% in the first six months of 2015. Increased EMV penetration and digital identity verification will continue to push fraud out of the stores and onto digital channels, of which mobile is the most vulnerable.
Source: The Paypers.