January 08, 2014
Webinar - New Entrants to Mobile Commerce Prove Unprepared for Channel Threats
By TMCnet Special Guest
Aaron Press ,
For the past five years, the annual True Cost of Fraud (TCOF) study and webinars presented by LexisNexis (News - Alert) Risk Solutions and Javelin Strategy & Research have helped thousands of retailers stay abreast of the latest risks and solutions related to eCommerce.
On Feb. 5, 2014, LexisNexis will release a new TCOF study that specifically focuses on the fast-growing mobile commerce channel. A one-hour TCOF Mobile study webinar held the same day includes a download of the full study. The new study provides critical insight into the fraud challenges faced by merchants, financial institutions and consumers due to the acceptance of mobile payments.
In spite of numerous fraud risks, mobile payment acceptance is surging, and the traditionally browser-dominated mobile payment environment is rapidly diversifying. This study teaches merchants how to mitigate fraud and its associated costs by choosing a mobile payment channel wisely and employing the necessary fraud technology solutions.
The new study also shows that nearly one in 10 merchants accepted mobile payments in 2013, and mobile acceptance is growing rapidly. The mobile browser and mobile app remain the preeminent mobile acceptance channels, but the largest growth channel is the emerging mobile point-of-sale (mPOS) hardware, which was virtually unheard of in 2012.
Significantly, small mobile merchants lose more revenue to fraud than large merchants. This is likely caused by their greater reliance on mPOS hardware—which may prove easier to breach than other methods—and inadequate use of anti-fraud solutions.
Merchants of all sizes, however, are largely unprepared for the fraud that accompanies offering a mobile app. While the fraud-prevention reputation of mobile apps is justified, mCommerce merchants who accept mobile app payments often experience a surge in transaction volume. This should be a good thing, however these merchants are generally unequipped to handle the fraud that invariably accompanies the extra business. The study shows that mCommerce merchants who accept payments though a mobile app experience greater fraud as a percent of revenue than those who accept mobile payments only through the mobile browser.
The new True Cost of Fraud Mobile study and webinar will teach merchants of all sizes:
How to limit fraud costs by thoroughly authenticating CNP transactions through the mobile device;
- How to combine a mobile app with strong authentication to counter threats of payment compromise and identity fraud;
- How to identify fraudulent mobile transactions separately from online transactions to better understand the risk and mechanisms associated with the channel; and
- How to maintain open communication with financial institutions and other mobile merchants surrounding mobile fraud threats and solutions.
Register today—the webinar is free, but space is limited.
Edited by Stefania Viscusi