Kount: Finding ways to reduce mobile fraud

Courtesy of the Kount blog

kount logowKount provides hints for reducing mobile fraud, based on five findings from its Mobile Payments and Fraud: 2016 Report. The report describes how some businesses fall short in understanding mobile fraud and its implications.



  1. Lack of Tracking. More than 4 in 10 organizations do not track fraud by channel or are uncertain if they do. This is probably due to the fact that mobile transactions are still a smaller percentage of overall revenue for many merchants. So even if the fraud rate is actually much higher in the mobile channel – it remains hidden. This translates into a lack of urgency in identifying mobile transactions.
  2. Lack of Comparative Data. Closely related to the statistic above, 43 percent of merchants don’t know mobile’s share of fraud losses. Thus, a merchant may see fraud losses increase by 5 percent and take some general steps to address the issue (e.g., more manual reviews). But if the merchant realized, for example, that almost all of that increase was coming solely from a growing number of mobile transactions, the urgency to identify mobile transactions would become much greater.
  3. Lack of Visibility. Nearly half of organizations (49 percent report that they are uncertain whether or not fraud is increasing in the mobile channel. This lack of visibility into their own revenue stream similarly contributes to lower urgency. They may read industry publications that say mobile fraud is higher, but because they can’t see the impact within their organizations, they put off taking additional steps.
  4. Perceived Higher Costs. Two-thirds of merchants think standard eCommerce fraud processes and tools cannot fully manage mobile channel fraud risk. In fact, 20 percent say mobile requires very specialized tools. This perceived need for expensive new tools is a big factor in why merchants may delay taking steps to identify if a mobile device is being used in an eCommerce transaction.
  5. Uncertainty about Next Steps. 23 percent of merchants say their lack knowledge is the biggest obstacle to managing mobile risk. Another 39 percent say that determining if their company has a mobile fraud problem is a challenge. This uncertainty and doubt can lead to inertia.

To address all of the factors above, we recommend employing a best-in-class fraud prevention solution that integrates mobile fraud prevention into your eCommerce fraud mitigation. This ensures your system can offer these key capabilities coupled with real-time processing to make it easy and affordable for you to identify mobile transactions and fight mobile fraud better.

  • Know if a mobile device is being used for transaction
  • Identify what type of mobile device is being used
  • Pinpoint the “real” location of the mobile device
  • Determine if the device is a pre-paid device
  • Know if the phone number being used is a forwarded number
  • Associate other transactions with the device
  • Determine if it is a card-present or a card-not-present transaction
  • Ascertain if the financial information being used has been compromised


Not only do you need advanced mobile fraud capabilities, you need the tracking, visibility, and comparative data to understand just how much (or little) time you should spend fighting mobile fraud. Clear, concise reporting shows you exactly where to take action and where things are OK.


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