- Category: June 2016 - Mobile Marketing
A new study from Juniper Research has found that eCommerce merchants and financial institutions will be investing heavily in online fraud detection solutions over the next five years, with annual spending reaching $9.2 billion by 2020, up by 30% on current levels.
Considering that almost 90% of merchants support either a dedicated mobile site, mobile app for online shopping, or both, the sharp rise is actually of no surprise. Yet, around two-third (62%) of merchants are able to tell whether a transaction is coming from a computer or mobile device.
However, according to Juniper Research, fraudsters now perceive mobile payment channels to be particularly vulnerable and therefore more attractive targets, as many organizations have yet to apply the same levels of protection to mobile as they have to desktop transactions.
Biometric authentication is key to make mobile payment secure
“Digital security companies regard the mitigation of mobile fraud as a key revenue generator in the medium term,” claimed report author Gareth Owen. He argued that this was driving the development and implementation of advanced biometric authentication technologies which the companies claim can make mobile purchases as secure as any other web-based transactions.
In a survey of fraud detection solutions, the study, ‘Online Payment Fraud: Key Vertical Strategies and Management 2016-2020’ found that the leading solution vendors were now capable of reducing fraud levels down to less than 0.1% of transaction values in some key eCommerce verticals.
Research identifies Top 3 leading Fraud Detection and Prevention (FDP) players
As part of its research, Juniper conducted a comparative assessment of 12 solution vendors and identified CyberSource, Experian, and FICO as the Top3 players in the ‘Fraud Detection and Prevention’ (FDP) space, based on a range of criteria such as technological innovation, fraud detection performance, product range and strength of partnerships.
The study argued that all three companies demonstrated significantly higher performance than their peers in their data analytics capability and their ability to monitor fraud across multiple payment channels - including mobile - and the use of global threat intelligence networks.
A complimentary whitepaper, ’Managing the Risk of Fraud’, is available to download from the Juniper Research website together with further details of the full research.