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The Changing Landscape of Mobile Anti-Fraud Solutions

posted on: Mon Oct 09 2017

Mobile FraudWhen it comes to mobile channel payments, the tools and solutions that online businesses prefer for detecting and preventing mobile fraud have changed over the past few years. The Mobile Payments & Fraud: 2017 Report provides a longitudinal perspective on the wide variety of tools, techniques, signals and services that merchants have used, use, or plan to use.

A couple of early favorite mobile anti-fraud tools have faded in popularity since 2015, as the chart below illustrates:

Tools/Solution 2015 2016 2017  % Decrease 
 Secure Mobile Payment Methods   26.7%  20.9%  13.9% -47.9%
 Text Messaging - SMS  12.3%  15.5%  6.7% -45.5%


At the same time, a number of solutions that initially had less support have now gained in popularity:

 Tools/Solution  2015   2016   2017   % Increase 
 Mobile Geolocation 9.1%  14.5%   27.8%  +198.9%
 AVS  15.5%   30.0%   46.2%  +198.0%
 Velocity Checks  17.3%   30.9%   34.5%  +99.4%
 Complete Fraud Platform   20.3%   30.0%   46.6%  +129.5%
 Fraud Scoring  25.1%   37.3%   48.4%  +92.8%


In the Mobile Payments & Fraud: 2017 Report, merchants made it clear they were careful not to put all their eggs in one basket when it comes to fighting fraud in the mobile channel.

  • 3 out of 4 merchants said they used multiple tools
  • 44% of merchants used four or more tools for fighting mobile fraud
  • More than 30% used six or more tools
  • 16% used at least eight mobile risk management tools or services

Interestingly, when merchants were asked to name the tools or services they considered to be the top three tools that were best for fighting fraud in the mobile channel, Complete Fraud Platform was the clear winner. But after that, there wasn’t a clear consensus:

Top 3 Tools for Preventing Mobile Fraud

The Mobile Payments & Fraud: 2017 Report also asked online businesses to look ahead to their future mobile fraud prevention plans, and Complete Fraud Platform once again emerged as the preferred choice for fighting fraud in the mobile channel. In fact, 70% of merchants said that they would deploy a Complete Fraud Platform by the end of 2017 as part of their mobile fraud prevention efforts.

Not unexpectedly, there were noted differences between large and small merchants when it came to the number and types of mobile fraud prevention tools used.

Large eCommerce operations were:

  • More likely overall to deploy mobile antifraud tools and solutions
  • Tended to deploy more tools to fight mobile fraud
  • Employed a more comprehensive or integrated approach

For example, more than 77.3% of merchants with annual revenue of $250 to $500 million used a Complete Fraud Platform. That’s nearly 3x more than the 26.3% of online businesses with less than $5 million in annual revenue that used a Complete Fraud Platform.

Want to get more insights into the latest trends, continuing patterns, and changing behaviors related to mobile commerce and fraud? Read the eBook: "The Download on Mobile App Fraud" to learn about fraud threats for mobile apps, mobile checkout abandonment issues, and how to increase mobile conversions. 

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