Data: The new pain points of mobile commerce
Mobile e-commerce is growing fast, and online retail fraud levels are keeping pace with this expanded sales volume.
One reason is an increase in digital goods available online—digital gift cards, subscriptions, downloadable software, entertainment and tickets. Criminals have devised new “fast fraud” tricks using synthetic identities, aided by widespread data breaches in the last couple of years; and mass “botnet” attacks, catching many merchants off guard this year, according to a study LexisNexis Risk Solutions released this week.
While the average volume and value of fraudulent transactions has risen over the past year, so has the cost to resolve each case of fraud. Younger consumers—those most prone to making purchases of mobile entertainment and games—are prime targets for the newest types of fraud in mobile e-commerce. And while credit cards are still the top fraud target, alternative payments are getting hit too.