Through this series we have looked at reducing fraud chargebacks via risk-based authentication for account holders, behavioral analytics and 3D Secure. In this final post we will look at mobile strategy.
There is no shortage of statistics reflecting the tremendous growth in mobile commerce. In fact according to Criteo, 29% of US eCommerce transactions are from mobile (globally that number climbs to 34%). That represents tremendous growth when you consider that Apple’s app store only opened seven years ago, in July 2008, with just over 550 apps. Virtually every online merchant should want a piece of the growing mobile pie.
However, and perhaps counterintuitively, driving transactions through your mobile app can also help drive down fraud – as long as you put some things into place.
Make mobile account creation as simple as possible. According to the VWO 2014 ecommerce survey, 23% respondents abandon carts because they don’t want to create a new account, second only to the 28% who abandon because of unexpected shipping costs. Allowing consumers to create an account on web that can be used on mobile and pre-populating fields such as city and state based on zip code are just a few ways to make it simpler to create an account.
Make mobile account creation as secure as possible. Leveraging a behavioral analytics solution helps to ensure that a single IP isn’t creating multiple accounts, the geo location of the account creator matches that of the billing address and other anomalies aren’t present at account creation.
Drive secure checkouts through those mobile accounts. Implement risk-based authentication at checkout to ensure that the legitimate account holder is making the purchase. Authentication on a mobile device actually presents some advantages over authentication on the web in that it is easier to leverage biometrics. Rather than asking account holders to step up using OTPs, card details, etc., consumers can step up by pressing their finger on the touchpad, scanning their eye or face or speaking a phrase into the phone. It’s fast and, let’s face it, pretty cool. The fact that the finger/eye/face/voice print can be stored directly on the device allays both consumer and regulatory concerns around privacy.
Monitor the entire session, not just point of transaction. Behavioral analytics should be leveraged throughout the mobile session and not just at account creation. Behavioral analytics will identify anomalous behaviors such as adding goods directly to shopping carts without browsing that could indicate fraud.
Implementing these will not only help you reduce fraud chargebacks but grow loyalty through the ability to balance an enhanced customer experience and strong security.
Interested in learning more about how a risk-based approach can reduce fraud chargebacks? Please join us tomorrow at 11 am EST for an educational webinar. Register here.
Learn more about RSA’s mobile solutions, including our risk-based authentication product, Adaptive Authentication, for mobile
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