Managing Risk and Customer Experience in a Mobile-First World

ThreatMetrix provides a look back at some of the previous trends relative to mobile history. In 2007, the first Tesla roadster was unveiled. It was a leap forward in terms of technology. Having a PDA was very common and smartphones were on the rise. Shortly thereafter, the very first jailbreak was released targeting mobile devices with Trojan virus attacks.

Fast forward to today and the key interface of choice for consumers is now native applications on smartphones and tablets. However, these native applications can be rooted with malware very shortly after they’ve been launched. This is a cyber trend that will continue because mobile is now the preferred method of customer interaction.

Something that we’ve witnessed is that the network traffic originating from mobile devices is increasing to a point that our customers are changing how they are fighting fraud. In general, we see that fraudsters tend to hop around the wireless networks and get out ahead of the fraud prevention solutions every time. So the fraudsters are blacklisting and white-listing IP addresses.

We have come to understand that mobile devices tend to have a lot more hardware than the traditional desktops. They get your location from the chip and have direct access to those pieces of hardware for mapping applications or the ability to get your location by the VPS chip.

Potential Mobile Fraud Risk

It is important to have some type of mobile back-end integration. There is also an effort to migrate customers from mobile web to native applications, by making the native application available for download. App developers have encountered challenges with this as well but for the most part the transition is successful.

What we are seeing now are some more extreme circumstances that appear to open businesses to fraud lawsuits. If it’s easy for fraudsters to bypass device identification systems or masquerade as a new device and access large volumes of transactions, businesses may be held liable.

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