Growth market for mobile fraud analysis

Gartner claims detection software needs urgent improvement.

Mobile fraud

An analyst at Gartner has predicted fraud detection will increasingly be used against mobile transactions.

However, by the end of 2013, software will be in use by 90 per cent of banks, social networks and other e-commerce sites to validate customer identity.

"Because of the improving browser experiences on smartphones, mobile commerce and transaction execution are set to increase rapidly," said William Clark, research vice president at Gartner.

"We estimate that by the end of 2013, 12.5 per cent of all e-commerce transactions will be mobile."

The problem facing these organisations at the moment is fraud detection systems are currently designed to work with fixed-line telephony, he added. These packages lack the ability to process mobile phone transactions with total confidence that the call is genuine.

The inability to detect identity theft has held back the introduction of location-based applications, Clark's co-researcher, Gartner distinguished analyst Avivah Litan, said.

"This increase in confidence will help open up new possibilities for context awareness that will be richer than they are in fixed-line commerce," she explained.

Vendors are already starting to consider the ID of the mobile device and the location of the phone as fraud eliminators. Some also track the caller's interactions with the host application.

Analysis of mobile parameters is an unexplored realm of fraud detection software developers and, in such a new field, there is little mobile transaction experience to draw upon.

The need is to build effective risk models and develop scoring algorithms that significantly improve on current risk analysis software, the Get Smart With Context-Aware Mobile Fraud Detection report pointed out.

One development, which may upset privacy advocates, is organisations will want to compile information on the typical locations each customer frequents. At the moment, the only such data gathered is from the customer notifying their payment card issuer that they will be travelling abroad to prevent card fraud.

"Enterprises that want to remain competitive in electronic commerce over the next five years should begin exploring context-aware applications by year-end 2011, for both fraud detection and later on for customer acquisition and retention activities afforded by personalised and customised marketing and advertising information," Clark advised.

Featured Resources

Key considerations for implementing secure telework at scale

Identifying the security risks and advanced requirements of a remote workforce

Download now

The State of Salesforce 2020

Your guide to getting the most from Salesforce

Download now

Fast, flexible and compliant e-signatures for global businesses

Be at the forefront of digital transformation with electronic signatures

Download now

Rethink your cybersecurity strategy for the new world

5 steps to secure the enterprise and be fit for a flexible future

Download now

Recommended

Andrew Daniels joins Druva as CIO and CISO
Cloud

Andrew Daniels joins Druva as CIO and CISO

22 Jul 2020
University of California gets fleeced by hackers for $1.14 million
ransomware

University of California gets fleeced by hackers for $1.14 million

30 Jun 2020
Australia announces $1.35 billion investment in cyber security
cyber security

Australia announces $1.35 billion investment in cyber security

30 Jun 2020
CSA and ISSA form cyber security partnership
cloud security

CSA and ISSA form cyber security partnership

30 Jun 2020

Most Popular

How to find RAM speed, size and type
Laptops

How to find RAM speed, size and type

3 Aug 2020
How to use Chromecast without Wi-Fi
Mobile

How to use Chromecast without Wi-Fi

4 Aug 2020
Police use of facial recognition ruled unlawful in the UK
privacy

Police use of facial recognition ruled unlawful in the UK

11 Aug 2020