Biz Community – You know the field of digital security is booming when there’s a need for the day job titled ‘retail industry fraud expert’. These are people like Aaron Press, director of e-commerce and payments at LexisNexis Risk Solutions…
What’s the day job of a retail industry fraud expert like?
Press: It can be like drinking from the proverbial fire hose. E-commerce continues to grow at incredible rates, but it remains vulnerable to fraud due to the remote nature of the channel. Fraudsters understand this, and constantly adapt their strategies to defeat new strategies to stop them. That means fraud teams and tools must also constantly adapt.
What prompted the new study on m-commerce fraud?
What’s the key reason that m-commerce is attracting fraud at a disproportionate rate over online fraud?
Talk us through the losses m-commerce companies experience when dealing with fraud.
That’s shocking. Who’s most at risk, and why?
Press: Now that we have a better understanding of the risks associated with mobile commerce, we can create processes, rules, and models that help to identity problematic transactions before they are completed. Those most at risk are organizations that fail to differentiate between mobile and traditional e-commerce from a payments and fraud perspective and integrate that knowledge into their fraud prevention practices. This is important even if a company has not made a conscious effort to enter the mobile channel; the nature of today’s mobile devices means that e-commerce merchants have mobile customers, whether they know it or not.
Let’s be proactive. What can we do – as retailers and consumers alike – to better protect ourselves?
Press: For retailers, the key is to collect as much information about the transaction as possible, and to use that data in a risk-based, layered approach. By examining a variety of incoming signals, such as cart contents, IP address, device attributes, and identity information, merchants can develop processes that both stop fraud and enable sales. Consumers should focus on common sense measures to protect their identities. They should transmit financial information only over secure networks, ensure they are shopping with reputable merchants, and keep an eye on payment accounts to identity fraudulent transactions as soon as possible.
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