Security Strategies: Preventing Mobile Payment Frauds

Banking CIO Outlook | Monday, February 18, 2019

Nielsen, an American information and measurement company, reports that 89 percent of the consumers’ time spent on mobile devices is spent interacting with the applications while the mobile web makes it only to 11 percent. The ease of accessing, faster shipping, and user-friendly operation of websites and applications have taken the e-commerce industry to a whole new level. Today, consumers are more comfortable with online shopping than visiting an actual retail store. Most of the e-commerce websites and other payments methods are now shifted to online payments because of the easy payment processing and attractive offers. But on the other hand, hackers are taking this an opportunity to steal the consumers’ money by hacking sites.

Few Payment and Card Companies: Accuity, AEVI, Wallester

The annual Mobile Payments & Fraud Survey (MPFS) predicted that famous payments processing companies such as Apple Pay lost their user from 48 to 35 percent and Google Pay lost their consumers down from 38 to 25 percent making it as a most decremented wallet as compared to other mobile wallets.

Mobile and online thefts include identity theft, loyalty fraud, and friendly fraud. In identity theft, the hackers intercept sensitive data that is not safely protected, and they make use of this information to make online purchases. Loyalty theft is a way where fraudsters interrupt accounts of loyalty programs or members and transfer the money to their accounts. Friendly fraud is an unintentional error when consumers cancel approved orders and are expecting a refund. The friendly fraud sometimes becomes intentional when fraudsters receive the order and still claim that they didn’t receive order and claim for a refund. To prevent such theft and secure their money, merchants and consumers should use multi-factor authentication, implement PCI DSS Level 1 security standards on payment cards, and should have a clear understanding about the type of website while placing the orders like m-commerce or e-commerce. Even though the result of both is the same, there are different ways hackers can attack; it is the enterprise’s responsibility to give importance to the channel and make use of necessary tools to prevent frauds from hacking their sites.

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