May 2, 2017
From 2016 to 2017, the number of merchants that accept card-not-present transactions via the mobile channel increased, but, as a percentage, the number of companies that track fraud in that channel has decreased, according to a new report. CyberSource’s annual online fraud benchmarking report found that 61 percent of merchants support m-commerce, up from 52 percent in last year’s survey. Those that specifically track the fraud originating from mobile transactions fell from 52 percent last year to 49 percent this year.
Supporting the results of a study reported by CardNotPresent.com last week, CyberSource found that mobile transactions are safer, overall, than desktop and laptop transactions. Merchants polled reported they lost .9 percent of their revenue to fraud from their Web stores compared to .8 percent fraud losses in their mobile channel. But, as mobile transactions continue to grow, they become a more inviting target for fraudsters and the techniques used to prevent e-commerce fraud may not be entirely effective against m-commerce fraud.
“Distinguishing m-commerce from e-commerce, and tracking fraud in each channel separately, is critical to reducing fraud in the mobile channel and minimizing the number of good m-commerce transactions you need to review and reject,” the authors said in the report. “In assessing m-commerce transactions, you can use all of the captured order information—such as the channel, time of day, customer identity, and item purchased—as input to establish fraud rules. The more relevant data there is, the more that can be done to distinguish genuine orders from fraudulent transactions.”
- Assessing Fraud Risks for Mobile CNP Payments
- Mobile Payments: Challenges and Opportunities