Introduction

Sales made via smartphones and tablets are expected to exceed $208 billion in 2018, an increase of 32% from the previous yearDominated by young shoppers, mobile commerce (aka mCommerce) will account for nearly  50% of US online transactions by 2020 and is likely to become the preferred digital shopping method of the future.But while mobile sales present great financial opportunities, retailers still have some way to go before they can maximize revenues and effectively prevent fraud losses from this channel.

According to the 2017 Global Fraud Survey, over 90% of eCommerce merchants use the same tools to manage fraud across both web and mobile transactions. The survey also revealed that while over 80% of merchants support mobile shopping, only 52% track fraud rates by channel. But as mCommerce becomes more prominent, neglecting to adjust fraud management processes and tracking to this sales segment, will mean sacrificing hard-earned revenue.

Adapting fraud systems from desktop to mobile is no simple task. Retailers may misinterpret legitimate shopping behavior as ‘risky’ due to the nature of cellular connections (e.g. a mobile carrier may shift your browsing to another location). As a result, device fingerprinting and proxy detection techniques that are effective for desktop transactions are not as accurate in mobile orders, leading to a higher rate of false declines in this segment.

To deal with the increase in mobile usage, retailers must also make sure they’re offering the same shopping experience across channels – particularly given that  users are constantly switching between devices throughout the shopping journey. Shoppers who encounter a “limiting” mobile site are more likely to opt to buy from a competitor’s site. According to Google, 61% of users are unlikely to return to a mobile site they had trouble accessing and 40% opt to visit a competitor’s site instead.

Riskified has extensive experience protecting merchants from CNP fraud across devices and channels. In this guide, we share best practices for effectively distinguishing between fraud attempts and legitimate mobile orders. The guide also includes insights on how to adjust the fraud management process to effectively handle mobile transactions without compromising users’ shopping experience.