Tag: CardNotPresent.com

Mobile payments fraud may be a risk for merchants

Report highlights the lacking awareness merchants have concerning mobile payments fraud

Mobile payments fraud may be growing quite problematic for merchants. A recent study from Kount, the Fraud Practice, and CardNotPresent.com shows that merchants may be unaware of the mobile fraud that could be targeting them. Fraud is not uncommon in the retail space, especially when it comes to digital shopping. Many retailers have had to deal with fraudulent payments in the past and have become somewhat proficient at doing so, but mobile represents a new channel that retailers are not yet comfortable with.

Many retailers are not certain if they are tracking fraud

The report shows that 39.4% of merchants said that they were actively tracking fraud across all of their channels. Another 34.2% claimed that they were uncertain if they were tracking fraud across channels, however, which may be cause for concern among those involved in the mobile payments space. The report also shows that the majority of merchants (61%) are uncertain about whether or not fraud is increasing in the mobile channel. This uncertainty could affect their ability to combat fraud both in the present and in the future.

Mobile payments may not be riskier than other channels

Mobile Payments - FraudMobile payments have become quite popular among consumers, but they have also become a target for malicious groups that want to exploit financial information. Approximately 34% of merchants that deal in digital goods believe that the mobile channel is somewhat riskier when compared to conventional channels. The majority of merchants, however, believe that mobile is as risky as any other channel, since all channels have had to deal with fraudulent transactions in the past.

More merchants are beginning to take mobile payments seriously

The number of merchants that are actively supporting mobile payments continues to grow. The report notes that 68% of all merchants now have some form of mobile payments plan in place. Another 20% of merchants are currently planning to put a mobile payments system in place at some point this year. Merchants are showing favor for mobile channels because of their convenience and believe that mobile devices are an effective way to engage consumers.

Merchants are becoming more conscious of mobile payments security

Security is attracting more attention from merchants engaging mobile consumers

Merchants are beginning to become more aware of the dangers that exist in the mobile and digital spaces, according to the results of the 2nd Annual Mobile Payments and Fraud Survey conducted by Kount, The Fraud Practice, and CardNotPresent.com. These dangers have existed for some time, but merchants have been blind to them as they rushed to enter into the mobile commerce space. While mobile commerce has become quite popular, it has also become quite a risky thing to participate in because of the lack of security that exists on many popular platforms.

Survey shows that many merchants are participating in mobile commerce, but few have adequate security in place

According to the survey, 66% of merchants around the world now support mobile commerce. Mobile commerce support among merchants is expected to rise by 30% annually over the next few years. Merchants are becoming more comfortable with the mobile space as they begin to expose themselves to consumers that primarily shop and purchase products from smartphones and tablets. These merchants are working to become more accommodating to these consumers in the hopes of remaining relevant with changing consumer behaviors.

Mobile commerce continues to be a risky field

Mobile Payments - Merchants concerned about mobile securityThe survey shows that nearly a third of merchants consider the mobile space to be more risky than e-commerce. Mobile commerce has become a popular target for hackers because of the trafficking of financial information. This information can be somewhat easily accessed by hackers because of the lackluster security that exists with most mobile commerce platforms. While this has become a major concern for merchants, it has also caused many consumers to avoid mobile shopping.

As security improves, consumers are likely to become more active in mobile commerce

As merchants become more conscious of the risks that exist in the mobile space, they are beginning to take security more seriously. This means introducing new features to popular mobile commerce platforms that merchants have designed themselves. More security is expected to increase consumer spending in the mobile field because they will feel more confident in the safety of their financial information.