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BizReport : Mobile Marketing : April 15, 2015

Survey: M:Commerce lagging behind fraudsters

Only about one-quarter (23%) of merchants currently accept mobile wallet payments according to the 2015 Mobile Payments & Fraud Survey, but the most interesting news: mobile fraud is accelerating faster than mobile retailers are implementing practices to stave that growth.

by Kristina Knight

Kount, CardNotPresent and The Fraud Practice collaborated on the survey, which was conducted between 2014 and 2015. Perhaps the most concerning is the confusion retailers have about mobile fraud. Researchers found 40% of merchants were 'unsure' if fraud increased after a data breach and that 60% are uncertain about the growth rate of mobile fraud.

Other interesting findings from the report include:

• 47% believe ecommerce fraud tools 'can't support' mobile commerce
• 79% of merchants say they use at least 2 tools/services to combat fraud
• 37% say they'll add mobile POS options and 27% say they'll add apps for shopping

"As barriers to mobile adoption continue to fall and mobile payments of all kinds surge, a green field is emerging for fraudsters," said Steven Casco, CEO of and the CNP Expo. "What was once not worth their time is becoming very lucrative and companies throughout the e- and m-commerce ecosystem are just beginning to understand how vulnerable they actually are. This report is the most comprehensive treatment of attitudes toward the mobile channel available, examining how merchants and service providers are trying to protect it and how fraudsters are attacking."

Researchers also found:

• 48% say mobile commerce is 'equally as risky' as traditional ecommerce
• 24% believe mobile commerce requires specialized tools to catch fraudulent activity
• 28% say they 'will not add' additional tools for mobile fraud

Image via Shutterstock

Tags: CardNotPresent, m:commerce, mcommerce fraud, mobile fraud, mobile marketing

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