Just 52 % of merchants are tracking fraud on mobile purchases

Nearly half (48 per cent) or merchants are not tracking consumer purchases on mobile apps for fraud, despite Covid-19 driving a huge increase in mobile app purchases, according to new research.

A study conducted among 1,000 fraud and payments professionals worldwide by fraud detection and payment acceptance specialist Ravelin also found that COVID-19 has driven a 36 per cent increase in mobile app downloads and a 54 per cent increase in purchases in apps during the second quarter of 2020 alone from consumers.

Despite this, the proportion of merchants tracking mobile orders (48 per cent) lags far behind those tracking website orders (68 per cent) and call centre orders (60 per cent).

Ravelin said the figures are worrying considering that account takeover fraud is also on the rise.

The study found that half of merchants report a rise in account takeover, with nearly a third of retail merchants saying it’s now the top fraud threat facing their business.

In terms of current levels of fraud tracking across channels, a varying proportion of merchants are measuring a varying number of payment data points.

A total of 67 per cent are tracking the payment method type and 56 per cent are tracking the issuer country, while 42 per cent are tracking the use of loyalty scheme points and 31 per cent are tracking BIN ranges.

Mairtin O’Riada, co-founder and chief information officer at Ravelin said: “Account takeover coupled with a lack of fraud tracking on mobile devices means a huge number of fraudsters are currently getting away with denting merchants’ profit margins at a time when Covid-19 has already ravaged business confidence.

“Covid-19 has forced consumers online and onto apps faster than anybody could have prepared for, but fraudsters are hiding in plain sight on mobile devices. For any merchant that conducts a significant volume and proportion of business through an app, I’d advise you to look at ways to protect your sales through that particular channel.”

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