Fraud risks in mobile payments - Neural Technologies' survey results

Neural Technologies recently carried out a survey to ascertain the views of global mobile operators on mobile payments and the fraud risks associated with them. The survey elicited responses from Europe, Africa, Middle East, Asia and the Caribbean.

Date: 1st October 2011
Categories: Technology

Mobile payments are one of the most exciting new developments in the telecoms sector with tremendous growth expected over the next few years.  However, as the use of mobile payments grows globally so too does the risk of fraud, with several eminent research companies predicting that these services will be extremely attractive to fraudsters and those seeking vehicles for money laundering.

Neural Technologies’ survey revealed that 69% of operators were already offering mobile money, with 85% seeing it as a service differentiator from their competitors. 

Various factors, including region, maturity of financial systems and other socio-economic issues affected how operators perceived their customers would use the service, but the three main contenders were paying for goods and services, money transfers and banking facilities.

Respondents were unanimous that partnership with an existing payments organisation was vital for successful mobile payments and customer security, with ­ 30% already in partnerships and 70% looking to partner in the future.

When asked what they thought potential mobile payments fraud threats might be, answers included identity theft, stolen PIN codes, account information hacking, money theft, money laundering  and subscription fraud, amongst others. 

Some operators said they had managed to control the threats of subscription fraud and money laundering by creating rigorous registration policies and procedures and limiting the number and amount of transactions.  Others suggested fraud threats could be reduced by providing advice to users on PIN management and replacement of SIM cards.

Click here for the full survey results Fraud Risk in Mobile Payments Survey Results.

Find out more about Mobile Payments Fraud.

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