Why Small Businesses Should Pay Attention to Mobile Payment Fraud

  • Phone Verification

Identity theft has shown to be a major problem for mobile merchants. As mobile payment options become more popular among small businesses, so do the opportunities for fraud. Its not surprising that the use of advanced prevention techniques is helping larger businesses stop more mobile fraud attempts compared to small businesses.

Mobile e-commerce merchants should thoroughly authenticate card-not-present transactions through mobile devices. We recommend creating a mobile application with strong authentication to counter the threats of payment compromise and identity theft. These merchants should take extra steps to verify the identity of both the consumer and the device and to mitigate fraud through identity theft. With authentications solutions, merchants can establish identity while protecting consumer payment data. Maintaining open communications with financial institutions and other mobile merchants will help you better understand the evolving nature of fraud threats and solutions.

Mobile devices create many new challenges to securing Internet services. As mobile banking continues to grow, so will the security weaknesses within the applications. Mobile payments applications should be revised to include stronger browsers, identification and authentication and even biometrics to ensure users are who they say they are. Without enhancing your organizations fraud prevention solution, you will always be more vulnerable to fraudsters. Like any good fraud prevention strategy the key to defending your business is with a layered approach. Identity verification and authentication help contribute to a secure layered strategy. Optimizing your strategy with multiple layers of fraud protection is one sure way to protect your business and customers.

[Contributed by EVS Marketing]