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The Real Cost of Fraud

A survey by RSA shows another troubling trend: 60% of all confirmed fraudulent transactions in 2016 originated from a mobile device, which is an almost 1:1 ratio between mobile and web transactions, the fraud rates in mobile banking are sure to increase.

READ MORE: Fight Mobile Banking Fraud with Microlatch BIOCARD

By 2022, the consumer market for mobile biometrics will exceed US$50 billion annually and accelerating beyond a CAGR of more than 40%.  This market cannot solely be sustained by smartphones and there is already a significant push to launch trials with biometrically secured Visa and MasterCard debit and credit cards.  The biometrics mobile security market also extends to data storage devices, automotive keyfobs, identification, secure payments, secure access, one time password display, credit and debit card CVV display, online access, smart home, blockchain, drivers licenses, government, police and military identity cards or devices etc. etc. etc., Microlatch intend to take a primary positioning in these markets with products that exceed customer expectations in quality, design, price and performance.

According to ‘The Nilson Report’ a 2015 report, fraud losses incurred by banks and merchants on all cards issued worldwide reached $16.31 billion. When we estimate that the global card volume totaled $28.844 trillion, this means that for every $100 in volume, 5.65¢ was fraudulent. If this wasn’t bad enough, the report goes on to predict that by 2020, losses will grow above $35 billion annually. Another recent study by Javelin Research places the current domestic losses at around $16 billion and growing quickly to $24 billion by 2018.

The above report does not take into account the indirect costs related to the problem of fraud. And what about the cost and frustration incurred by consumers who are often forced to spend endless hours dealing with fraud on their own accounts?  While fraud costs banks billions of dollars every year, damage to their reputation can be almost impossible to recover from.

According to comScore, from September 2010 to September 2014, smartphone usage increased by 394 percent, while tablet usage rose by an astronomical 1,721 percent in the United States. So it’s certainly no surprise that mobile payments are predicted to skyrocket over the next five years.  mobilThis shows that the global mobile payment volume in 2015 was 450 billion U.S. dollars, and projects that number to surpass 1 trillion U.S. dollars in 2019.

With the growing interest in and use of mobile devices and payments, users are rightfully concerned with cybersecurity threats. To combat these threats, there has been a surge in using biometric technologies for user authentication.

 

Sources:

 

Betanews

RSA

The Nilsen Report

Javelin Research

comScore

mobilThis

 

www.microlatch.com