Fraudsters sense new opportunity
on mobile devices..
From organized crime to petty theft, fraud affects everyone.
A recent study conducted by The Fraud Practice and CardNotPresent.com noted that, while mobile devices offer a lot of opportunities to improve the shopping experience, they are also susceptible to new fraud risks
. While many retailers have already implemented tools to detect and manage fraud from their eCommerce websites, comparatively few have done so on their mobile sites, which can present big problems.
Benefits of mobile commerce
On the plus side, mobile shopping channels are growing rapidly. According to the report, mobile devices now account fro 20 percent of retailers' business - double the shopping volume observed last year.
Merchants have observed the sharp uptick in mobile activity and are responding to capitalize on the growth of customers shopping via their smartphones and tablets. The 2014 Mobile Payment & Fraud Survey suggested that 66 percent of retailers now actively support mobile shopping, up by 30 percent compared to last year. The number of merchants offering mobile apps doubled, and nearly half of retailers now have their own dedicated mobile websites that allow customers to access their online stores while on the move.
Dealing with fraudulent activity
However, the number of consumers who perceive mobile commerce as being riskier has also grown. One-third of respondents said mobile commerce has more latent threats than conventional eCommerce and that number is on the rise, according the study.
Moreover, retailers are realizing that conventional fraud prevention processes aren't enough - when managing mobile channels, merchants need to deploy specific tools and strategies to monitor risk across that channel. One-third of respondents said fraud prevention devoted specifically to mobile is now a necessity, which is double the number who agreed with that sentiment one year ago.
"Merchants also realize that fraud follows opportunity, and there may be no greater opportunity for fraud today than in mobile," explained Don Bush, vice president of marketing at Kount, the organization that conducted the survey. "Protecting and growing your business requires a fraud solution that integrates with all mobile platforms without any impact to the customer experience or your business."
Utilizing a multichannel eCommerce platforms to help deal with threats
An eCommerce platform plays a pivotal role in retailers' operations, helping them successfully navigate the complex business world they face today. With the right platform in place, merchants can improve their ability to capitalize on mobile shopping activity without leaving themselves susceptible to fraud and payment risks.
Ideally, eCommerce platforms should enable retailers to provide multiple payment options through leading payment gateways to minimize fraud risk. Fraud exception queues allow merchants to take specific note of fraud criteria and apply processing holds on orders that meet certain criteria that point to fraud. Merchants can utilize these tools and services to ensure no falsified purchases are made, regardless of whether the attempts are executed through mobile devices, online stores or any other shopping avenue.
With mobile penetration on the rise (according to comScore, more than 60 percent of mobile subscribers in the United States have smartphones), retailers need to utilize this channel to maximize their sales potential.
However, with the right eCommerce platform in play, they can significantly minimize fraud, which in turn helps them keep prices in check and otherwise improves the customer shopping experience.