Mobile fraud is on the rise.
Somewhat ironically, the
fraud rate on transactions not involving a phone have decreased significantly, as more transactions become mobilized, based on a new study.
The study comprised an analysis of Kount data from
more than 100 million transactions across various devices from thousands of merchants over the last four years. The industries include retail, digital goods, multi-channel, online games, travel and
telecommunications.
While the fraud rate for non-mobile transactions decreased by 50% over the last four years, the fraud rate for mobile increased by 81%.
This is the first time that
fraud on mobile devices has passed online and in-store fraud, according to Kount.
And of the mobile fraud, more is happening on Android than iOS devices.
The mobile fraud picture has
changed over time.
In 2011, fraud on iOS devices was 45% greater than on Android. But only two years later, the fraud rate on Android was higher than iOS by 17%, which grew to 44% last year,
which is where it stands today,
One thing that has held steady over the last few years is the lead in size of transactions that Apple has over Google, which is consistent with other
research.
In 2011, purchases on iPhones were $28 higher than on Android phones.
By last year, the iPhone average transaction was $124, which was $59 over those made on Android
phones.
At this stage, average purchases on iPhones are at $130, exceeding the average non-mobile transactions of $107.
As the money moves to mobile, all of the associated baggage,
like fraud, moves with it.