Mobile Fraud Determined to be Higher Than Online, In-Store Fraud According to Kount
The rate of mobile fraud is highest on Android devices specifically, according to newfound data from Kount, Inc.
In addition, mobile fraud as a whole is outpacing online and in-store fraud for the first time in 2015. Kount analyzed over 100 million transactions from various devices belonging to thousands of merchants across every retail category beginning in 2011, and ending June 2015.
The data also reveals that average transaction amounts on iOS mobile devices are greater than those made from Android.
As it stands, the rates of fraud on Android devices have not consistently exceeded that of iOS devices. In fact, this trend shifted in 2013 when Android actually had the upper hand. Coincidentally, fraud rates on iOS devices have decreased since Kount began tracing the data in 2011. On the other side of the coin, Android device fraud rates increased between 2011 and 2013.
“With consumers increasingly transacting on mobile and the adoption of EMV technology in the United States, we expect to see mobile fraud rates continue to increase versus online and in-store purchases,” commented Don Bush, the Vice President of Marketing at Kount.
“Merchants may be implementing increased fraud protection measures for online and in-store transactions, but they’re still playing catch up when it comes to mobile fraud protection. It’s imperative that retailers – and everyone in the retail and financial sectors – understand the myriad risks with mobile transactions and take the necessary steps to put mobile-specific fraud protection in place.”
There is no doubt that the mobile fraud rate is on the rise. Mobile fraud has increased by 81 percent from 2011 t0 2015, with that statistic likely to rise unless counteractive technology is put into place.
“While trends demonstrate certain operating systems have higher rates of incidence, mobile fraud is not limited to any one type of phone, tablet, or transaction,” continued Bush. “Before companies can effectively stem fraud, they must first identify the origin and device type behind each mobile transaction and take the necessary steps from there. We anticipate the shift to EMV in the US this fall will lead to a decrease in-store fraud, but also expect that fraud will continue to shift to mobile channels.”