mCommerce is Growing significantly, but Not as Fast as Mobile Fraud

Wednesday, April 22nd, 2020

The use of mobile devices to buy stuff over the internet is the latest trend in eCommerce.

Last year, mobile accounted for almost 80 percent of all e-commerce transactions, which explains why merchants must work to streamline the mobile experience for their customers.

But while focusing on m-commerce seems like a gold mine, the dangers may far much outweigh its advantages according to a March report by TransUnion.

The Chicago wing of the credit bureau released the E-Commerce in 2020 report after scrutinizing billions of 2019 transactions, for signs of mobile fraud, alongside associate firms.

According to the findings, mobile ecommerce payments went up more than 30 percent last year compare to 2018’s result.

And as you would expect, fraudsters have also been working the midnight shift to find m-commerce loopholes to exploit and steal from merchants and customers using the platform.

The researcher found a 118% increase in possible fraud from the m-transactions initiated in 2019.

Real fraud hit the roof

Real fraud, such as shipping-related scam and account-takeovers also went up according to TransUnion.

Figures show a 347 percent rise in account-takeover scam— which involves fraudsters taking control of consumer accounts with various tricks such as phishing, social-engineering, or hacking.

“Consumer accounts carry invaluable personal credentials that cybercriminals look to steal. Fraudsters then use these troves of info to breach into accounts, acquire cardholder information and make fraudulent transactions,” says the report.

The Ecommerce in 2020 report also advises retailers to upgrade to the latest fraud-detection tech because prevention is a better strategy.

“Merchants must shift to the latest risk-assessment systems and upgrade from time to time to safeguard consumer info and transactions.”

Still, shipping scam remains the most common— it skyrocketed over 390 percent.

It happens when a fraudster uses a stolen customer account to place an ecommerce order. During the transaction, the scammer retains the address to avoid detection, only to request a change in address later, during the transit phase. That way, tricksters can use fraudulently-acquired accounts to buy items online and go undetected.

What does that mean?

TransUnion’s findings are not an unusual occurrence. Cybercriminals are known to develop a soft spot for the most lucrative niches and right now m-commerce seems like the best place to be.

So merchants must remember to augment security even as they invest in streamlining their mobile experiences.