UK Card Fraud Experts Warn Against Looming Mobile Payment Fraud Risk

Sixty percent of leading UK anti-fraud management and specialists believe that mobile payment options pose the greatest potential risk going forwards, despite falls in card fraud over recent years, according to a survey by UKFraud and Card Fraud Conference. Mobile payments technology includes: premium SMS-based transactions, direct mobile billing, mobile web payments and contactless/near field communications (NFC). It is the last of these, contactless payment, that is growing fastest and causes the greatest concern for the future amongst those polled; particularly where security risks are not fully addressed by the industry.

Most respondents felt that anti-fraud systems and processes have struggled to keep pace with the speed of technological development recently on the mobile payment side. Other respondents, however, expressed concerns at the general lack of agreement on who is responsible for combating the mobile payment fraud threat. In all, 15 organisations were identified as potential stakeholders in combating the issue, although many felt that the banks would probably pick up the ownership of joint strategic initiatives in the UK. Most of those surveyed felt that management needed to be more proactive in combating the risks of mobile fraud.

Bill Trueman, chief executive officer (CEO) of UKFraud, said: “There is a natural tendency for those in fraud management to constantly fight complacency which helps explain why, at a time of falling fraud levels, these concerns are now being highlighted so vehemently. Most of those who completed the survey, felt that as the pace of change of the mobile payments arena is so great, that the exposures and security gaps are like red rags to the professional fraudster – particularly given how fast NFC payment is growing. Vigilance therefore is a prerequisite.”


Related reading

New consumer banking head for Citi Asia Pacific