Mobile e-Commerce Fraud Report Highlights Need for Better Mobile Security
A recent report into security for those who are buying online using mobile devices has highlighted much greater risks of fraud. As we are increasingly using mobile devices such as smartphones and tablets for general internet use, it is unsurprising that the public are using their mobile devices increasingly for purchasing online.
There has been a lot of talk about the importance of making a business`s website optimized for its use with mobile. This includes ensuring that it is easily navigable, quick to load and with content that is easy to read. By ensuring that your website is optimized for mobile, businesses can not only offer a better customer service but also better search engine optimization.
However, as the new study from the fraud prevention platform, Riskified suggests, it might be the case that security is being compromised due to the focus on performance and UX improvements. MRC`s Global Fraud Survey says that 90% of merchants use the same fraud prevention tools across all channels.
Digital Goods and other Signs of Fraud
The fraud security report explains that most physical goods are still bought online using a PC. However, digital goods are being increasingly bought on smartphones or other mobile devices, and fraud attempts on mobile devices are four times higher for digital goods than physical ones.
The study reports that fraud levels for gift cards which are purchased on mobile devices is almost double that of gift cards purchased on desktops.
There are certain behaviours which can flag up the possibility of fraud. Unfortunately, these behaviours can also be more common with mobile users. For example, a cart with a single item can be a sign of fraud, but mobile device users are much more likely to buy a series of small items, rather than all of them together in one order.
The time that purchases are made can also be a good indicator. It seems that fraudsters prefer to make purchases after midnight as it is thought that they can get past people who rely on manual reviews.
What can Merchants do?
Whilst consumers are generally covered by their credit card companies, it is still important that merchants put in place their own safeguarding measures, such as being vigilant about your orders, card security or address checking tools or using fraud prevention services.
As mobile devices increase in popularity for internet use, it is becoming increasingly important that e-Commerce merchants are helping in the fight against online fraud. By attempting to protect yourself and your customers you can not only help to prevent fraud happening but also gain respect from your customers.