September 27, 2018
By the end of the second quarter of 2018, mobile transactions accounted for 58 percent of all online transactions, according to a new report from ThreatMetrix. The San Jose, Calif.-based digital identity solutions provider said the channel has become the “undisputed key change agent” in digital commerce. Transactions via mobile device across ThreatMetrix’s network grew 72 percent from the same time a year earlier and more than 600 percent from 2015.
Mobile fraud attacks also grew 24 percent globally in Q2 compared to the April-June period in 2017. In the U.S., fraud attacks on mobile transactions grew even faster (44 percent higher year-over-year). While merchants of all kinds need to address the increase in mobile fraud even as their customers turn to mobile devices more often to transact, Alisdair Faulkner, chief identity officer at ThreatMetrix parent LexisNexis Risk Solutions said the channel actually provides more opportunity to authenticate users and transactions.
“Mobile is quickly becoming the predominant way people access online goods and services, and as a result organizations need to anticipate that the barrage of mobile attacks will only increase,” said Faulkner. “The good news is that as mobile usage continues to increase, so too does overall customer recognition rates, as mobile apps offer a wealth of techniques to authenticate returning customers with a very high degree of accuracy. The key point of vulnerability, however, is at the app registration and account creation stage. To verify users at this crucial point, organizations need to tap into global intelligence that assesses true digital identity, compiled from the multiple channels that their customers transact on.”
The report also examined what types of companies are experiencing what kind of attacks and what kinds of transactions have proven most risky. Download ThreatMetrix’s Q2 2018 Cybercrime Report here.