Mobile devices are ubiquitous. Most people have conducted business transactions of varied types via smartphones. Mobile devices have changed the way we do business with regard to e-commerce and consumers’ ability to issue mobile means of payments.
Many banks now offer mobile transactions; thus consumers can conduct banking transactions in the comfort of their homes. Retailers alike are not left out of this expansive growth as most retailers now have dedicated mobiles sites or mobile apps, all in the bid to improve the usability and the interaction with their offerings and products.[i]
The exciting ease of mobile commerce transactions is not all seamless and sans risk. Indeed, it is expected that fraudsters will take advantage of the many vulnerabilities and security control lapse inherent in mobile transactions and e-commerce. The security standards in smartphones is gaining more traction however, there still exists an elevated level of malware attacks on mobile devices thereby weakening the security controls that will necessarily prevent a fraudulent attack.
Based on the foregoing, it is inherent that businesses strategize and focus on the adoption of fraud mitigation strategies for Mobile commerce. Mobile devices have come to stay and the growth will continue to expand to more areas of our everyday living thus the need for fraud mitigation. The need for robust fraud mitigation solutions that will combat fraudulent transactions as well as curb potential losses. Businesses who fail to be proactive in seeking this solution will be exposed to loss of revenue.
Financial institutions are leading the way with adopting fraud mitigation standards to thwart criminal efforts at stealing money via mobile payments and e-commerce transactions. Velocity controls, one-time passcode, mobile geo-location data or GPS – Global Positioning System are some of the mitigation standard practices.
In summary, the best approach to mobile payment fraud is the adoption of the right tools as well as the application of a layered approach. The combination of the right tools paired with predictive analysis will provide deeper insights to customer profiles, transaction trends and the type of frauds an organization may be exposed to.[ii]