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.
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Natasha Chilingerian
Natasha Chilingerian has been immersed in the credit union industry for over a decade. She first joined CU Times in 2011 as a freelance writer, and following a two-year hiatus from 2013-2015, during which time she served as a communications specialist for Xceed Financial Credit Union (now Kinecta Federal Credit Union), she re-joined the CU Times team full-time as managing editor. She was promoted to executive editor in 2019. In the earlier days of her career, Chilingerian focused on news and lifestyle journalism, serving as a writer and editor for numerous regional publications in Oregon, Louisiana, South Carolina and the San Francisco Bay Area. In addition, she holds experience in marketing copywriting for companies in the finance and technology space. At CU Times, she covers People and Community news, cybersecurity, fintech partnerships, marketing, workplace culture, leadership, DEI, branch strategies, digital banking and more. She currently works remotely and splits her time between Southern California and Portland, Ore.
