New Study Reveals True Cost of Mobile Fraud

Posted on February 4th, 2015 by Dan Rampe

Mobile commerce

In 2014, Every $100 of Mobile Fraud Cost Merchants $334. In 2013, Every $100 Cost Merchants $283, a Hike of $51 in Just One Year

Do you happen to remember our referencing famous bank robber Willie “the Actor” Sutton who replied when asked why he robbed banks, “Because that’s where the money is.”? Never mind, Sutton never said it (likely it was made up by an enterprising reporter), it’s just common sense and the reason mCommerce has become a high priority target of cybercriminals. That’s where the money is.

A heraldonline.com story reports on LexisNexis Risk Solutions’ annual True Cost of Fraud Mobile Study demonstrating that as more merchants go to mobile, so do cybercriminals. The following has been excerpted from the heraldonline.com article and edited to fit our format. You may find the full article by clicking on this link.

70 percent spike

Revenue that mobile commerce (mCommerce) merchants lost to fraud spiked 70 percent in 2014 to 1.36 percent compared to 0.80 percent in 2013. For comparison, all merchants lost 0.68 percent of revenue to fraud in 2014 in comparison to 0.51 percent in 2013.

More ways to steal

The complexity of additional payment channels, like digital wallets, coupled with additional access channels, like mobile web sites and apps, produce more avenues for fraud. Study results show that mCommerce merchants accept an average of 4.5 payment channels, significantly more than the 2.6 channels accepted by all merchants. mCommerce companies have more fraud exposure than other types of retailers.

Now is the time for fraud prevention tools

Dennis Becker, Vice President, Corporate Markets, LexisNexis Risk Solutions said, “Mobile commerce is going to be more widely adopted by merchants because customers are clamoring for the convenience. To reduce customer friction and sell more through the mobile channel, now is the time for mCommerce retailers to put in place fraud prevention tools to counter the disproportionate amount of fraud that is currently occurring.”

Authentication, authentication, authentication

“mCommerce merchants have an opportunity to strategically implement mobile-channel specific fraud prevention measures,” Becker explained. “The findings of this study suggest that the more mCommerce companies move away from a ‘one-size-fits-all’ fraud strategy the faster they will grow and be more profitable.”

Based on the study results, customer identity verification is the top fraud prevention challenge for mCommerce merchants, followed by friendly fraud. The inability to confidently verify the identity of a customer and their device leads to friendly fraud, which is defined as fraud perpetrated by a family member or close associate. The study shows that 24 percent of fraudulent transactions are due to friendly fraud. “We expect this percentage to drop, as more mCommerce merchants adopt mobile-channel specific fraud prevention tools,” Becker concluded.

ThreatMetrix builds trust on the Internet by offering market-leading advanced fraud prevention and frictionless context-based security solutions. These solutions authenticate consumer and workforce access to mission critical applications using real-time identity and access analytics that leverage the world’s largest trusted identity network.

ThreatMetrix secures enterprise applications against account takeover, payment fraud, fraudulent account registrations, malware, and data breaches. Underpinning the solution is the ThreatMetrix® Global Trust Intelligence Network, which analyzes over 850 million monthly transactions and protects more than 210 million active user accounts across 3,000 customers and 15,000 websites.

The ThreatMetrix solution is deployed across a variety of industries, including financial services, enterprise, e-commerce, payments, social networks, government and insurance.

For more information, visit www.threatmetrix.com or call 1-408-200-5755.

Join the cybersecurity conversation by visiting the ThreatMetrix blogFacebookLinkedIn and Twitter pages.

 

 

 

Mobile Attacks Listed as One of the Top Threats Facing E-Commerce Businesses

Posted on September 24th, 2014 by Dan Rampe

According to a Recent ThreatMetrix Survey, 25 Percent of E-Commerce Executives Indicate Mobile Attacks a Leading Business Threat

San Jose, CA – September 24, 2014 – ThreatMetrix®, the fastest-growing provider of context-based security and advanced fraud prevention solutions, today announced the results of a recent customer survey, which found that mobile attacks are a top concern for e-commerce executives. In the wake of recent mobile innovations, including the iPhone 6 release, ThreatMetrix urges businesses to evaluate and update their current mobile strategies.

“There has been a significant shift in consumer activity on mobile devices that is causing major security concerns among businesses across all industries,” said Alisdair Faulkner, chief products officer at ThreatMetrix. “Recent data from the ThreatMetrix® Global Trust Intelligence Network (The Network) shows top threats facing mobile apps and browsers include account creation, login and payment fraud. As mobile usage increases, specifically on enterprises’ mobile-based apps, businesses need to do everything in their power to protect customers from account takeover, fraudulent transaction and other related security risks.”

According to data from The Network, which is comprised of more than 210 million active user accounts, mobile represented one third of total traffic in 2013, and this number is projected to increase to 50 percent by the end of this year. In addition to the increase in mobile usage in general, consumer behavior on mobile is changing, as 86 percent of time on mobile devices is spent on mobile apps and only 14 percent on mobile Web browsers.

However, many businesses’ mobile apps are not secure enough to handle the increased usage. ThreatMetrix’s recent survey conducted with TechValidate indicates that 25 percent of executives using the ThreatMetrix TrustDefender™ Cybercrime Protection Platform believe mobile attacks are a leading threat they need to protect their business and customers against. Additional top threats include fraud losses, at 91 percent, and fraudulent account creation, at 49 percent.

“Fighting fake account creation is something we take seriously, always working on improving our strategies and trying new ideas,” said a chief technology officer at a medium-sized enterprise consumer products company. “ThreatMetrix has been most effective, and we see the impact directly in the metrics we monitor. The clearest gain was when we were able to launch ThreatMetrix directly in our mobile applications and saw the immediate drop off of fake account creation.”

In addition to increase mobile app usage, the recent release of the iPhone 6 and its new features should also be of concern to businesses, specifically in e-commerce and retail. The addition of near field communications (NFC) technology and Apple Pay will bring new security concerns via mobile for brick-and-mortar and online retailers alike.

“While the use of Apple Pay with NFC technology will cut down on opportunities to copy card data in-store, more data breaches are expected until the U.S. rolls out end-to-end encryption,” said Faulkner. “Additionally, the increase of secure in-store transactions will likely push even more fraud online, into the most vulnerable channel, where there is no card, person or physical device present.”

Using advanced fraud prevention and context-based authentication can help identify good users and protect customers without adding additional steps to the authentication process. The Network analyzes more than 850 million monthly transactions and combines device identification, threat assessments, identity and behavioral intelligence to accurately identify cybercriminals without creating friction for good users.

ThreatMetrix Resources

About ThreatMetrix

ThreatMetrix builds trust on the Internet by offering market-leading advanced fraud prevention and frictionless context-based security solutions. These solutions authenticate consumer and workforce access to mission critical applications using real-time identity and access analytics that leverage the world’s largest trusted identity network.

ThreatMetrix secures enterprise applications against account takeover, payment fraud, fraudulent account registrations, malware, and data breaches. Underpinning the solution is the ThreatMetrix® Global Trust Intelligence Network, which analyzes over 850 million monthly transactions and protects more than 210 million active user accounts across 3,000 customers and 15,000 websites.

The ThreatMetrix solution is deployed across a variety of industries, including financial services, enterprise, e-commerce, payments, social networks, government and insurance.

For more information, visit www.threatmetrix.com or call 1-408-200-5755.

Join the cybersecurity conversation by visiting the ThreatMetrix blogFacebookLinkedIn and Twitter pages.

© 2014 ThreatMetrix. All rights reserved. ThreatMetrix, TrustDefender ID, TrustDefender Cloud, TrustDefender Mobile, TrustDefender Client, the TrustDefender Cybercrime Protection Platform, ThreatMetrix Labs, and the ThreatMetrix logo are trademarks or registered trademarks of ThreatMetrix in the United States and other countries. All other brand, service or product names are trademarks or registered trademarks of their respective companies or owners.

Media Contacts
Dan Rampe
ThreatMetrix
Tel: 408-200-5716
Email: drampe@threatmetrix.com

Beth Kempton
Walker Sands Communications
Tel: 312.241.1178
Email: beth.kempton@walkersands.com

 

 

What Does Mobile Mean for Enterprise Security?

Posted on August 8th, 2014 by Dan Rampe

the-good,-the-bad-and-the-ugly-of-mobile-adoptionThreatMetrix Latest Infographic Reveals Mobiles’ Good, Bad and Ugly Sides

By the end of this year, there’ll be more smartphone subscriptions than there are people on planet earth (approximately 7 billion). And that number is going to go even higher when Apple launches their new iPhone 6 on September 9. That’s an amazing figure – especially when juxtaposed against the fact that only 4.5 billion earthlings have access to working toilets (Time.com March 2013). No wonder why there are so many smartphones. You have to do something while waiting for your turn in the WC.

In ThreatMetrix’s network of more than 160 million active user accounts, one third of the total traffic in 2013 was mobile. And that number is projected to increase to 50 percent by the end of this year. With so many users turning to mobile, ThreatMetrix put together an infographic of mobile’s good, bad and ugly sides so those charged with enterprise cybersecurity will be better equipped to protect staff as well as customers.

ThreatMetrix® builds trust on the Internet by offering market-leading advanced fraud prevention and frictionless context-based security solutions. These solutions authenticate consumer and workforce access to mission critical applications using real-time identity and access analytics that leverage the world’s largest trusted identity network.

ThreatMetrix secures enterprise applications against account takeover, payment fraud, fraudulent account registrations, malware, and data breaches. Underpinning the solution is the ThreatMetrix® Global Trust Intelligence Network, which analyzes over 500 million monthly transactions and protects more than 160 million active user accounts across 2,500 customers and 10,000 websites.

The ThreatMetrix solution is deployed across a variety of industries, including financial services, enterprise, e-commerce, payments, social networks, government and insurance.

For more information, visit www.threatmetrix.com or call 1-408-200-5755.

Join the cybersecurity conversation by visiting the ThreatMetrix blogFacebookLinkedIn and Twitter pages.