Canadian Security Magazine

Mobile selling boom leaves US retailers exposed to fraud

By Canadian Security   

News Data Security Paul Bessant Retail Knowledge Volumatic Kount

A recent survey has revealed that mobile is the fastest growing sales channel in the US – but fraud prevention practices are failing to keep up, leaving retailers exposed to a constant threat.

The Volumatic Kount US Retail Fraud Survey 2013, which interviewed 100 of North America’s leading retailers, revealed that 34% of retailers now use this sales channel with a further 20% planning to add a mobile sales channel in the next year or two.
The Survey, commissioned by retail consultancy Retail Knowledge, stated: “Mobile channels offer a new opportunity for fraudsters and in conducting these interviews we got a sense that loss prevention processes and technologies are not keeping pace with new mobile options”.
The Volumatic Kount US Retail Fraud Survey also highlighted that analytics and monitoring was a top concern and that some 17% of those retailers that trade online do not use any systems for analytics and monitoring. It seems as if many of those using some sort of system are not entirely convinced about its value or usability.
The Survey also revealed that 39% of retailers that trade online do not use fraud management external systems at all, regardless of sophistication.
Paul Bessant, CEO of Retail Knowledge, said: “Retailers are still not taking their mobile offering seriously when it comes to fraud. Online presents vast new opportunities for fraudsters. Despite the growth in the mobile sector, the survey has highlighted that retailers are not adapting their Loss Prevention strategies fast enough to counter the growing threat from cybercrime”.    
The Volumatic Kount US Retail Fraud Survey 2013 was sponsored by intelligent cash handling specialists Volumatic and payments experts Kount. It was carried out by researchers at Martec International, who interviewed 100 of North America’s leading retailers – representing over a fifth of the North American retail market.

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