Mobile ID and Fraud

There’s someone trying to steal from your business and a bigger lock on the door won’t keep them out. In the world of mobile commerce, it’s not the sticky fingers of a shoplifter you have to contend with; it’s the stealthy digits of a web-enabled criminal. The ability to verify customers and detect fraud on a mobile device without compromising the customer experience is a challenge faced by businesses operating in the digital space.

At first glance, most mobile bandits will look like your everyday customers – a credit card number, a shipping address, and a shopping cart full of goods ready to hit “submit.” The kind of people you want. But they’re not conversions – they’re out to con you; foul fraudsters hacking their way through to your bottom line, keeping you and your compliance team up at night.

At the same point, you don’t want your security checks to be a hinderance to the vast majority of customers who are legitimate. Your site is a place of business, not a bunker. And if customers feel that the process is too cumbersome, lengthy, unwelcoming or disruptive, they’ll scroll over to the next site and fill up their shopping cart there. Sometimes customers can be fickle, but unfortunately, fraudsters are resilient. You need to walk on the sharp edge of the sword between the two.

Mind Your Mobile Business

Online commerce is growing, with Nielsen reporting it to represent up to 20 percent of sales in many key business sectors and more growth forecast over the next few years. Add to the mix the rapid growth of mobile commerce – a reality that will touch every business as more and more phone-addicted digital natives mature into consumers wanting and needing everything from shoes to credit cards, rental cars to banking services and expecting to access those on their mobile device. As that rises, so too does the risk of mobile fraud. Your need is to be protected on all fronts, especially in the digital world.

The anonymity of the online world can make it a wild and busy place, one where fraudsters are all too eager to mine, phish and hack their way into your revenue streams. One of the ways they do this is by stealing identities and using the ill-gotten information for ill-gotten gains. And they’re getting better at it all the time. As you know, the Equifax breach of March 2017 affected millions and helped fuel a jump in online fraud. Some reports, such as Radial’s, claim a 300 percent to 600 percent correlated increase in eCommerce fraud from this one event.

Tips to Cut the Risk

Mobile technology allows people to take the entire internet with them at all times. And they’re using it to conduct business in every conceivable way – from shopping at a bus stop to banking at a coffee shop, it isn’t business as usual in the 21st century. But the dark truth is that fraudsters are right there beside them.

You can cut the risk to your business if you know what to look for – and how to act. Enter mobile identity verification technologies, a vital new part of your anti-fraud defenses.

Legitimate mobile devices are connected to and registered with a mobile network operator (MNO). Solutions that provide mobile identity data help businesses reduce identity-related challenges, quickly and easily verifying customers and weeding out bad seeds. Pinpointing the ownership of the number through MNO data will help you verify the customer’s name, address, and of course, their phone number.

With access to MNO data, businesses can find out if the phone number is active, in use, and valid, as well as who it belongs to. Depending on the coverage and reach of your business, that can help heaps if you’re selling and shipping to customers in other countries. A mobile verification tool will help reduce the risk of fraud.

Two- or multi-factor authentication adds an extra layer of security. Using this technology in the checkout process, your site sends out a one-time passcode to verify the authenticity of the customer and their purchase. If they are who they say they are, they enter the code and complete the transaction. If they’re not, the code is still sent to number owner, alerting them that something suspicious is up and preventing the fraudster from getting away with their scheme.

Account Creation with Ease

From the customer’s perspective, all of these are simple, user-friendly and intuitive solutions that cause little pain and lots of gain for them. A swipe, an auto-fill or a verification code sent to their phone makes for a quicker transaction and meets their expectations.

Customers want instant access to your products and services, especially if they’re using a mobile device. Cutting the verification process to mere seconds makes for happy customers and happy businesses, while those extra layers of back-end security makes for frustrated fraudsters.

With more than 5 billion mobile phone users around the world, and well over half of those with a smartphone or web-enabled device, a secure mobile identity verification process is crucial. In developing markets where hundreds of millions of people are unbanked, unable to prove their identity through traditional methods, yet still connected by mobile technology, identifying customers by mobile while fighting fraud is crucial to your business.

Your mobile customers don’t have to be a mysterious blank face hiding behind a screen. See who they really are and unmask mobile thieves with a robust and secure mobile identity solution.