The holiday season is a busy time for consumers and merchants alike. People are purchasing gifts for friends and loved ones – online, in-store and on their mobile devices. With mobile technology allowing consumers to be just a press of a button away from completing a transaction, mobile commerce solutions are primed for growth heading into 2016 and beyond. However, as our annual fraud report confirms, fraudsters shift their efforts to newer technologies where there might be more vulnerabilities; so, an increased use of mobile technologies to complete transactions can also lead to more instances of mobile fraud attempts. Mobile identity verification solutions help businesses spot and stop these fraud attempts and ensure that their customers are legitimate, especially during the holiday rush.
EMV chip cards are being implemented in the United States as a way to increase card security for consumers at the point-of-sale. So, what does this mean for businesses operating online or through mobile? According to IDology’s 2015 Fraud Report, website applications continue to bear the brunt of attempted fraud. As EMV continues to gain more steam in the US, it is expected that fraud will shift even more to website applications since the EMV or “chip and pin” technology is more difficult to duplicate than the current magnetic-stripe variety in use. And, the same goes for the mobile marketplace. Our fraud report also saw an increase in suspected mobile-based fraud. Ultimately, this will continue to grow, not only with the adoption of EMV, but also as mobile commerce applications become more and more widespread.
Mobile Fraud Trends to Know
There are a number of ways that fraudsters target unsuspecting consumers using the mobile technology they have available. Here are a few emerging trends that threaten security when it comes to mobile growth:
- Porting – Fraudsters redirect a victim’s mobile phone using information such as their name, address, date of birth, and phone number. This information can be stolen in a data breach or purchased on the Dark Web.
- Cloning – By making a copy of a smartphone, a fraudster can listen in on conversations, intercept messages and rack up data charges. They can also request financial account passwords and more credentials, which are unknowingly sent to the clone.
- Recycling – Environmentally conscious consumers recycle old smartphones, but do not know where the device may end up. If it gets into the wrong hands, it can lead to a world of financial hurt, especially if the device is not properly wiped clean before recycling.
Staying ahead of these trends is essential for merchants that deliver a mobile experience to their customers. The key is in providing a secure and streamlined interaction though mobile while also improving the overall ease of use and without adding unnecessary friction. By strengthening mobile security and reducing friction, businesses allow legitimate customers to easily and conveniently access their platform while removing suspected fraud from the equation. Learn more about how IDology’s ExpectID Mobile identity verification solution can assist your organization by calling (866) 520-1234.