Mobile payment fraud is growing, and is growing faster in the mobile ecosystem than anywhere else. While Windows remains the most popular operating system used by fraudsters at 38%, the combined figures for iOS and Android are now 51% of all online fraudulent activity. The growth is probably even greater since little more than half of merchants track fraud on mobile channels.
The figures come from Sift, a company that protects its customers from various forms of online abuse, but a company that can in this instance be considered a payment fraud detection firm. Sift uses machine learning algorithms to analyze attempted transactions on its customers, blocking or quarantining suspected or obviously fraudulent events. In so doing, it has been able to analyze (PDF) data from 34,000 websites and apps, and an average of 35 billion events per month across 2018 and 2019.
Physical e-commerce remains the most popular target for fraudsters, but digital e-commerce (typified by gift-cards) has grown in favor. Sift believes that the growing maturity of the mobile channel in all forms of everyday life has triggered the fraudsters to take advantage of new opportunities.
Just as the targets have evolved with the emergence of mobile as the fraud platform of choice, so too have the payment types evolved. The more apparently obvious types -- gift cards and credit cards -- occupy only positions six and seven in the most popular methods. The top three are online promotions, digital wallets and money orders. "In the case of online promos," reports Sift, "25% of attempted transactions involving these discounts were fraudulent."
The growing maturity of the mobile channel in all forms of everyday life has triggered the fraudsters to take advantage of new opportunities.