Gartner: Mobile commerce growth outpaces anti-fraud tools

The number of mobile transactions is expected to grow through 2014

By 2014, about 12 per cent of all e-commerce transactions will be made using smartphones and other mobile devices, but fraud detection tools for mobile commerce are lagging, Gartner said today.

"Because of the improving browser experiences on smartphones, mobile commerce and transaction execution are set to increase rapidly," William Clark, a Gartner analyst, said in a statement.

"Enterprise applications must detect fraud in these mobile environments, but fraud detection tools available today that work in [wired] computing environments don't work well or at all in the mobile world," Clark said. Tools to detect fraud in the mobile space are in the early stages of development, and he estimated it will take until at least 2012 for them to mature.

Gartner said CIOs need to start researching the fraud tools under development as they consider launching mobile payment systems. Having mobile fraud prevention systems in place will allow companies to remain competitive in e-commerce.

Generally, Gartner outlined three types of fraud prevention methods available now for mobile applications.

The first, called mobile device identification, is provided through JavaScript on a server that a mobile user logs into. The script captures information about a user's browser and phone.

If the application is browser-based, the script application captures unique browser identification information and data to uniquely identify the phone. If the mobile e-commerce application is native on the device, the native application can also gather the phone's serial number and network card number to forward to the e-commerce entity -- but only after the user opts in.

A second way to prevent mobile fraud uses the phone's location information and requires that the device only be turned on. For an enterprise, using location information can help specifically authenticate the user through correlation with other systems such as a user's address in a directory.

Mobile phones can forward location information based on GPS data, but also requires user opt-in. Locations can also be received by mobile network operators employing software tools that don't require user opt-in, Gartner said.

Third, Gartner said some online fraud detection vendors are beginning to customize their risk scoring and rule-based models for mobile applications. Gartner didn't name any of the vendors, but said they are looking at the device itself, its location and the behavior patterns of the user inside a mobile application on a phone. This tactic is still new and a lack of mobile commerce experience to draw upon makes it difficult to build resilient risk models, Gartner said.

Avivah Litan, another analyst at Gartner, said that with the explosive growth in smartphones and the growth of mobile commerce means setting up mobile fraud detection systems is an "imperative" for enterprises.

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags Gartnertelecommunicatione-commercesecuritymobileinternet

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Matt Hamblen

Computerworld (US)
Show Comments

Essentials

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?