Sure, yesterday was Halloween. But the reality is holiday merchandise has been on the shelves for weeks now. And you've likely already started working on your marketing strategy for the holidays. But does your strategy include mobile fraud protection?
As mobile ecommerce evolves, so does mobile fraud. After all, fraudsters go where the money is. With the holidays right around the corner, there’ll be a significant uptick in mobile ordering.
Fraud during the holiday shopping season costs retailers an estimated $2 billion. And that’s just based on 2016's numbers. If you don’t have a mobile fraud protection plan already in place, now’s the time to add one.
Here are some ways to safeguard your brand from mobile fraud during the shopping season.
1. Conduct a Manual Review to Review Purchases
If you haven’t been doing them already, do a manual review. Assign veteran employees to review purchases made on mobile devices (e.g. smartphones and tablets). Manual reviewing is more accurate than relying on gateway filters, which makes the process more effective at preventing fraud.
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For example, verify that both the customer name and shipping address are legit. If the name and address don’t match, fraud could be at play. Sure, it’s cumbersome and time consuming, but it’s worth the peace of mind.
2. Incorporate Machine Learning to Review Data
Machine learning is one tactic retailers can use to combat fraud. Artificial intelligence (A.I.) has the ability to review and analyze huge chunks of data (that would be too much for a manual review).
Source: Dynamics Community
Through their analysis, an A.I. program can detect patterns used to identify and predict fraud before it happens.
3. Make Sure Your Mobile Apps Are Secure
Are your mobile apps secure? Vulnerable apps, which include shopping apps, are ripe for the picking with fraudsters. And even if your brand’s app is secure, there’s a good chance they may impersonate your app to trick customers into downloading them.
Source: Google Play Store
Fraudulent apps not only steal money away from you, but sensitive data, too. Common clues an app is fraudulent include little to no customer reviews and misspelled words. Keep an eye out for apps that seem sketchy and report them to the Google Play or iTunes Store.
4. Know the Common Telltale Signs of Fraud
If you know how fraudsters operate, then you can anticipate their next move. Here are some common signs fraudsters are conducting mobile fraud:
Timing. Fraudulent transactions made on mobile devices typically occur after midnight towards the early hours of the morning.
Number of Items in Cart. Mobile users grab basic purchases consisting of five items or less. If you see an unusually high number of digital goods, particularly gift cards, that’s a red flag.
Ignore Promo Codes. Who doesn’t want to save money? Fraudsters. If you notice an expensive purchase (GoPro, iPads) that’s eligible for a mobile promo code, and the “customer” doesn’t use it, could be fraud.
Mobile fraud is evolving. But by incorporating these preventative measures now before the holiday rush, retailers will be better prepared to stave off fraudsters this holiday season and year round.