More people are shopping and banking with mobile devices, and that means criminals are increasingly turning to online fraud focused on mobile transactions.
A new report by iovation, a TransUnion Co. company, reveals that risky transactions on mobile devices have increased 138 percent since 2017. The 2019 Financial Services Fraud and Consumer Trust Report includes an analysis of billions of global online financial services transactions that iovation and TransUnion have screened for fraud, as well as a survey of 1,604 consumers.
The report indicates that as consumers go mobile, so do fraudsters. Mobile device usage as a percentage of all online transactions has increased from 28 percent in 2014 to 61 percent so far in 2019. So far in 2019, 50 percent of suspected fraudulent transactions were from mobile devices. That compared to 2018 when fraudulent transactions were at 41 percent.
“Sorting out fraudsters—who try to camouflage themselves with behavior that looks very similar to good customers—is always going to be a challenge in the mobile space,” said Mary Ann Miller, head of fraud strategy at customer Varo Money. “In building our security systems, we put a lot of thought into the right balance of customer experience and safety. Otherwise we’re putting up walls at the expense of good customers.”
Indeed, investing in customer experience and safety seems worthwhile considering the report also notes that trust and security are important ways consumers evaluate what financial institution to use. The survey found nearly three quarters of respondents (72 percent) say account security and privacy are primary factors in deciding which institution they bank with/have a credit card with, and 64 percent would switch financial services companies for one that has more advanced security protocols in place.