A new Aite Group report advises financial institutions to prepare themselves to fight mobile fraud, something the Boston-based think firm says will increase alongside mobile banking adoption.
“Mobile Fraud: The Next Frontier” says while mobile fraud is currently a minor threat for financial institutions, the risks will grow as more advanced functionality is deployed to the mobile channel.
Due to the variety of mobile devices and operating systems out there, the mobile channel is tough to secure, and financial institutions view mobile fraud as a significant concern, Aite Group said.
The report is based on a survey with 24 global risk executives, which Aite Group conducted at the FICO World 2011 conference in November, and is the third in a five-part series of reports on online and mobile fraud mitigation in financial services.
When asked whether their institutions planned to deploy increased fraud prevention technology over the next two years to protect the mobile channel, 67% of respondents said yes and that they were already working on it, 25% said yes and that they were waiting to see what kinds of threats emerge, and 8% said not at this time.
“Mobile banking is rapidly increasing its penetration and capabilities, and fraud mitigation capabilities must keep pace,” said Julie Conroy McNelley, an Aite Group senior analyst and the report’s author.
“Financial institutions should be prepared to deploy the same type of layered fraud mitigation for mobile that is applicable to the online channel, as the threat environment largely stems from the same sources,” she said.
