A new study from Juniper Research has found that eCommerce merchants and financial institutions will be investing heavily in online fraud detection solutions over the next five years, with annual spending reaching $9.2 billion by 2020, up by 30% on current levels.
According to the research, fraudsters now perceive mobile payment channels to be particularly vulnerable (and therefore attractive targets) as many organisations have yet to apply the same levels of protection to mobile as they have to desktop transactions.
“Digital security companies regard the mitigation of mobile fraud as a key revenue generator in the medium term” claimed report author Gareth Owen.
He argued that this was driving the development and implementation of advanced biometric authentication technologies which the companies claim can make mobile purchases as secure as any other web-based transactions.
In a survey of fraud detection solutions, the market research firm found that the leading solution vendors were now capable of reducing fraud levels down to less than 0.1% of transaction values in some key eCommerce verticals.
