Why Small Businesses Should Pay Attention to Mobile Payment Fraud

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
, 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
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]

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