M-commerce growth spurs merchant fraud fears
The fear of fraudulent attacks is growing alongside the growth of m-commerce, according to the second Mobile Payments and Fraud Survey from Kount, The Fraud Practice and CardNotPresent.com.
"Not only are organizations now more likely to find that the fraud risk associated with the mobile channel is higher than with standard web e-commerce, but organizations are also more likely to believe the mobile channel requires additional tools for managing risk," David Montague, The Fraud Practice's president and executive consultant, said in a statement.
Conducted between November 2013 and January 2014, the Mobile Payments and Fraud Survey had nearly 2,000 participants, including merchants, service providers, acquirers, card associations and issuers. Of the 1,000 merchants surveyed worldwide, half had annual revenues over $50 million.
Notable merchant insights from the survey include:
- The mobile channel accounts for 20 percent of their business, double the amount in last year's survey;
- Sixty-six percent of merchants surveyed now actively support mobile, representing a 30-percent year-on-year increase;
- Merchants offering a mobile app for online shopping more than doubled from 21 percent to 54 percent. Nearly half the merchants said they offer a dedicated mobile website;
- Thirty-two percent see mobile as riskier than standard e-commerce, up from 24 percent last year;
- Merchants who believe standard e-commerce fraud processes are enough for managing mobile channel risk fell from 37 percent in the first survey to 26 percent; and
- Thirty-two percent say fraud prevention specific to mobile is increasingly necessary, nearly double the percentage who gave that answer in the first survey.
"Merchants realize that fraud follows opportunity, and that there may be no greater opportunity for fraud today than in mobile," Don Bush, Kount's vice president of marketing, said in a statement. "Protecting and growing your business requires a fraud solution that integrates with all mobile platforms without any impact on the customer experience or your business."
The survey is available from http://www.kount.com/campaigns/mobile-survey-report-2014.