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Mobile Commerce Attracts Criminals

August 14, 2015

With the advent of Near Field Communications-enabled smart phones (NFC) like Apple Pay and most recently, Samsung’s NFC payment system from their Galaxy S6—mCommerce is expected to continue its ascent along with a higher risk for fraudulent transactions. Projections are circulating that the mobile payment industry will reach extremes of $1 trillion by 2017.

Over the last several years, instances of payment card industry fraud using mobile devices have risen dramatically. In fact, according to Kount, a leader in online anti-fraud solutions who conducted a study tracking 100 million transactions, mobile fraud rose over 80% over the past four years. Kount executive, Don Bush, attributes the increase in mobile fraud to a greater reliance on mobile devices, as well as the recent transition to EMV compliance, which helps secure in-person transactions, forcing hackers elsewhere.

Because credit card fraud is the #1 crime in the world, Merchants are taking extra precautions with their in-store and online purchases and there have been a drop in fraud occurrences as a result, but merchants haven’t really considered how to address mCommerce. Bush warns that merchants need to be more aware where online transactions are originating in order to help assuage the escalating issue.

Criminals go after the weakest systems where it’s easy to break in, and in the case of mobile processing—it’s newer and the most unprotected means in, therefore hackers attack strong and fast before systems can be put into place to guard against them.

There are a few things merchants and consumers can do as an added layer of protection. Look for next week’s blog where we outline helpful tips to guard against mCommerce fraud.

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