Mobile Drives Global Spend on Online Fraud Prevention to $9.2 Billion by 2020
June 14, 2016
E-commerce merchants and financial institutions will spend nearly $10 billion annually on fraud prevention by 2020, a 30 percent increase from current spending, according to a new report. U.K.-based consultancy Juniper Research said in Online Payment Fraud: Key Vertical Strategies and Management 2016-2020 the spending increase will be driven by a burgeoning need to protect the mobile channel. According to the report, while organizations are increasingly applying advanced techniques to combat online fraud originating on desktops and laptops, fraudsters are exploiting vulnerabilities presented to them by the increasing number of mobile online transactions, to which merchants and FIs have paid relatively little attention.
The results of the Juniper study square with findings from the recent 2016 Mobile Payments & Fraud Survey from Kount. That study found, in the rush to open a new and increasingly lucrative sales channel, many have ignored the special challenges mobile presents from a risk management standpoint.
Gareth Owens, author of the Juniper report, noted that the development and implementation of effective biometric authentication technologies is crucial for antifraud efforts in an increasingly mobile e-commerce environment. So much so, that the digital security companies he interviewed for the study “regard the mitigation of mobile fraud as a key revenue generator in the medium term.”