News, Education and Events Decoding Digital Payments & Fraud

News, Education and Events Decoding Digital Payments & Fraud

Mobile Fraud Gaining Ground in China: Report

Mobile Fraud Gaining Ground in China: Report

Asian markets, particularly China, have been world leaders in mobile payments adoption, both online and at the POS. Not surprisingly, according to a recent report, fraudsters are attacking those payments with more frequency. As sales channels gain favor, fraud inevitably follows. Credit-card issuer China Union Pay recently polled more than 105,000 Chinese consumers and found 60 percent of them had been exposed to some kind of mobile-payment security threat, including fraud and malicious hacking attacks.

QR codes, a card-not-present technology even when used in stores, have become a favored hunting ground of fraudsters and hackers, the report said. Nearly 30 percent of those polled who reported being the victims of fraud said QR codes were involved—twice as many as last year.

In one common scam, fraudsters are able to route scanned codes to a thief’s payment account rather than to the retailer. Respondents also reported risks were the highest during the opening of new accounts.

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