Report: Mobile and Social Media will Drive Payments Fraud in U.K.
July 18, 2011
By 2015, the number of U.K. consumers purchasing products via their mobile phones will rise by 5 million to 10.5 million while those using social media will grow by 2.9 million, according to a recent report from the Centre for Economic and Business Research for online payments provider Paypoint.net. The burgeoning mobile and social media markets will provide fertile ground for fraudsters as online fraud in the U.K. is expected to surge by 18 percent growth, £165.2 million ($266.3 million) in 2011 to £195.3 million ($314.8 million) in 2015. “Shopping on a mobile phone or favorite social media site is the next big thing in ecommerce, but criminals are likely to capitalize on poor awareness of the risks by consumers and retailers alike,” said Michael Norton, managing director of PayPoint.net. “This study shows these new ways of shopping could be victims of their own successes for all the wrong reasons.” Mobile browsers and apps are expected to be the biggest contributor to the fraud losses, costing £24 million ($39 million) by 2015, the survey found.