Ahead of Black Friday, MEF Advisor and Programme Lead Claire Maslen discusses ‘International Fraud Awareness Week’ a collective effort to highlight fraud risks in mobile commerce, where fraudulent tactics like phishing, fake apps, and account takeovers exploit mobile convenience. What can networks and brands do to strengthen security and educate consumers?
Of course, it’s not just a timely coincidence that International Fraud Awareness Week is on the calendar immediately before Cyber Week—the US export that has hit retailers globally with Black Friday, Cyber Monday, and Small Business Saturday. But does the awareness week go far enough to help heighten consumers’ heckles to the scamming and spoofing that will no doubt peak over the coming days?
More than half of all transactions during Cyber Week are carried out on a mobile device. In 2023 the figure was just shy of 52%, so with an economic recovery in many markets it would be fair to assume this figure will go up. Mobile Wallets, alternative payment methods, and hyper-personalised offers powered by AI all have a role in driving this adoption through the mobile channel.
Educating consumers about safe online shopping practices, such as recognizing phishing attempts and verifying website authenticity, is also crucial. But the fraudsters always seem to be one step ahead of the education campaigns.”
However, the rise in mobile commerce also increases the risk of fraud.
So often fraudsters exploit not only our emotional engagement in a purchase but also the timing and efficiency of transactions. We have an expectation of ease and immediacy which has been driven by mobile behaviour.
I remember working with a big retailer years ago and the expectation was more than 27 clicks and a user would abandon their transaction journey online – through mobile, it was down to 6 clicks.
Fraudsters use various tactics to target mobile shoppers, including phishing attacks, fake apps, and fraudulent websites. They may impersonate trusted brands to steal personal and financial information. Additionally, the use of stolen credit card information and account takeovers are prevalent during this period.
To protect against fraud, retailers must implement robust security measures. This includes multi-factor authentication, real-time transaction monitoring, and AI-driven fraud detection systems.
Educating consumers about safe online shopping practices, such as recognizing phishing attempts and verifying website authenticity, is also crucial. But the fraudsters always seem to be one step ahead of the education campaigns.
At the route of our digital experiences is being able to verify a business is who it says it is, and equally for a consumer to verify they are who they say they are. Initiatives becoming more widespread such as Branded Caller ID or the data available through Mobile Intelligence platforms will go some way to help instil confidence back into electronic transactions.
The mobile industry continues to work extensively with brands, technology providers, and financial institutions, to stay ahead of the game which can sometimes feel like an unamusing game of whack-a-mole. Therefore, we must look outside our immediate sectors to learn from others. At MEF we work with organisations who believe in creating a safer online presence, so consumers and businesses can confidently transact. If you’d like to understand more about our membership value proposition, I’d love to chat.
