Mobile Fraud Costs Enterprises $92 Million and Growing Each Year
Feb. 9, 2015
With an ever increasing share of online transactions moving to mobile , fraud in the mobile channel is affecting large enterprises more than ever before, according to a new report. Despite claiming adequate antifraud capabilities are protecting their mobile transactions, large companies are averaging more than $92 million in annual losses to mobile fraud, a new survey by TeleSign and RSA found.
The report surveyed 250 companies with an average of $2.54 billion in revenue and found fraud, not surprisingly, is growing right along with growth in the number of mobile transactions. More than half of the companies polled expect mobile revenues to grow between 11 and 50 percent over the next three years, and nearly a third predict growth of 51 to 100 percent. Fraud, however, is keeping pace. For nearly one-fifth of those surveyed, the mobile channel already accounts for 25 top 50 percent of their fraud incidents and most expect fraud rates to double in the next two to three years.
“Companies who fail to make the required investment in enhanced mobile security will not only have sharply reduced revenues, but their operation costs will be much higher,” said Jack E. Gold, founder and principal analyst at J.Gold Associates. “A major finding from this report is that in the next 2-3 years, next generation authentication technologies like biometrics, soft tokens and other two factor authentication will largely replace the user name and password as the primary method of authentication.”