Fraudulent transactions on mobile apps grew by over 600% in three years

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Fraudulent transactions on mobile apps grew by over 600% in three years

Earlier this month, the Q1 Cybercrime Report from ThreatMetrix revealed that in the first quarter of 2018 alone, ecommerce services suffered as many as 820 million bot attacks.

Earlier this month, the Q1 Cybercrime Report from ThreatMetrix revealed that in the first quarter of 2018 alone, ecommerce services suffered as many as 820 million bot attacks, thereby ensuring that attack growth out-paced transaction growth by some 83 percent in the period.
 
Of over a billion organised bot attacks that were launched on ecommerce merchants in the first quarter, 10 percent came from mobile devices. This was mainly because 43 percent of all transactions took place via mobile devices, thereby making them a particulate target for fraudsters.
 
In a fresh report that analyses consumer fraud data for the first quarter of 2018, RSA Security has revealed that fraudulent transactions originating from a mobile app rose by 600 percent since 2015 and 39 percent of all fraudulent transactions during the quarter were carried out on mobile apps.
 
In fact, the use of mobile apps to carry out fraudulent transactions has become so commonplace that the use of traditional web browsers for fraudulent transactions has gone down from 62 percent in 2015 to just 35 percent this year. 82 percent of all fraudulent transactions using mobile apps were carried out using burner phones so that investigators could not identify such fraudsters.
 
To detect and prevent the use of burner phones for carrying out fraudulent transactions, RSA Security suggested that firms should implement accurate device identification and should adjust their risk policies accordingly to minimise false positives and customer friction during a login or transaction event.
 
"There has been a sharp rise in the volume of legitimate transactions carried out over mobile apps, so it's only natural that hackers have followed suit in targeting mobile channels for fraud. Unfortunately, many mobile apps fail to build security from the ground up. This means cyber-criminals and fraudsters are able to slip through the cracks, hijacking mobile applications and siphoning off credentials and funds," said  Daniel Cohen, director at the RSA Fraud and Risk Intelligence Unit.
 
"As mobile-related fraud continues to grow, consumers and businesses alike need to be aware of the risks," he added.
 

This article originally appeared at scmagazineuk.com

Copyright © SC Magazine, UK edition
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