Tag: mobile commerce fraud

Mobile commerce fraud is on the rise in Asia

Smartphone penetration leads to the rise of mobile commerce

In Asia, smartphone penetration is accelerating and these devices are becoming more popular for those that are interested in shopping online. By 2018, Asia is expected to account for half the world’s mobile users, with many people beginning to use their smartphones and tablets to play games, purchase products, and use social networks. As mobile adoption rises, however, fraud is becoming a greater problem in the mobile commerce space in Asia.

Japan, South Korea, and China have become very attractive mobile markets

Currently, Japan and South Korea are leading the way when it comes to mobile commerce adoption, with approximately 50% of both country’s populations engaging in mobile transactions. China has also become a very prominent mobile commerce market. In the first quarter of this year, mobile sales in China reached $58.4 billion, according to a recent report from iResearch. Companies are beginning to invest more heavily in the mobile space, and this is making the sector more attractive to malicious parties.

Mobile commerce fraud is becoming more common

Mobile Commerce FraudWhile mobile commerce represents only 14% of all transactions being made in Asia, it also accounts for 21% of all fraudulent transactions being made through mobile devices. As fraud continues to grow, mobile commerce merchants are beginning to feel extreme financial pressure. Merchants incur costs of $3.34 for every dollar that is being spend on a fraudulent mobile transaction. This is 27% higher than the costs merchants would incur from a fraudulent transaction being made on a traditional PC.

Mobile security is becoming a priority for businesses and consumers alike

Several merchants in Asia are beginning to get involved in the mobile commerce space, but they will have to find ways to better protect consumer information. Security risks have been a major concern for consumers, and these concerns have slowed the adoption of mobile commerce platforms to some degree. Several companies offering mobile payments services have found ways to improve security through the use of biometric technology, which leverages biologic information, such as fingerprints, in order to protect transactions and consumer information.

Zumigo launches new service to combat e-commerce fraud

E-commerce fraud could be put to rest with the new service from Zomigo

Zumigo, a leading developer of device location and identity verification technology, has announced that it will be launching a new service that could help in the fight against e-commerce fraud. The company suggests that the service will be the first of its kind, having the ability to validate merchant payments using real-time location data from a consumer’s mobile device. Such a service could go a long way in improving the security of the e-commerce field, as well as make mobile payments more attractive to merchants.

Merchants continue to combat fraud in the digital world

Conventional payment processors can confirm payments with little issue. These processors do not protect merchants from fraudulent charges, however, especially when they come in the form of charge-backs made at a later date. In the event of fraud, merchants have typically already shipped products to their buyer. If the purchase was fraudulent, then the merchant must find some way to recover the cost of the lost product, as well as the shipping costs associated with the purchase.

New service uses real-time mobile data to verify user identity

e-commerce - FraudThe new service from Zumigo aims to provide a solution for this problem. The service is designed to verify a consumer’s identity through the use of mobile billing records, which are obtained through Zumigo’s partnership with Equifax. The service matches credit card information with the mobile data that is available in an attempt to confirm that the consumer is who they say they are. In the event of fraud, merchants will have the ability to pursue legal action and recover their losses because of the information that will be made available to them.

Service may help bolster faith in mobile commerce

This service could be a boon for the mobile commerce field, wherein fraud has become a serious problem. Merchants have shown interest in embracing mobile commerce, but they are wary because of the high prevalence of fraud in this sector. Zumigo believes that its new service could spur some growth in the mobile commerce field by making it safer for merchants o participate therein.