Report: Less than 30% of Merchants Track Mobile Fraud
March 25, 2013
Late last week, antifraud technology provider CyberSource estimated that North American e-commerce businesses lost $3.5 billion in revenue last year to CNP fraud in the 14 th annual edition of its Online Fraud Report. Fraud rates by revenue actually went down from 2011 to 2012, but the fraud rate by order increased from 0.6 percent in 2011 to 0.8 percent in 2012. And, despite that e-commerce sales are expected to grow 12 percent next year, more than three-quarters of survey respondents said fraud staffing levels and budgets will remain flat or decrease.
In the latest installment of CyberSource’s Online Fraud Report, significantly more merchants tracked fraud perpetrated on mobile devices in 2012 (28 percent) than during the previous year (8 percent). And, while merchants seem to be more concerned with fraud in other CNP channels, a significant percentage still do not track fraud in traditional e-commerce (39 percent). In the MOTO channel, more than half of merchants do not track fraud.
“The mobile channel poses tremendous opportunity for companies, but also poses some risk, as typical validation tools available through the web are not as effective for mobile,” the authors wrote. “On the other hand, mobile phones provide rich data to companies to validate the consumer, especially through a mobile app.”