Roswell, GA -- (SBWIRE) -- 12/24/2015 -- According to a recent study, consumers are now embracing the use of mobile devices to do their online purchases. And it seems like unscrupulous people are already looking for ways to exploit the convenience of mobile channels, aside from their usual targets that include one-click check-out merchant services and digital gift cards.
It was estimated that around half of the total online transactions during Black Friday sales were made through tablets and mobile phones. And moving forward, there will be a significant increase in the number of consumers who prefer using their mobile devices to pay for the products and services this holiday season.
As the e-commerce volumes increase, the number of fraud cases will also go up. While phishing and credit card fraud will happen, there will be new types of attacks that will exploit the relatively new digital technology. The good news is that EMV-chip payment cards will be safe from fraud, which is contrary to some reports.
There are people who have forecasted that counterfeit card fraud will migrate from the POS terminal to online due to the shift of standard card reader to EMV. But according to industry experts, it is unlikely to happen during the upcoming holiday season. There are still only a fraction of merchants that adopted the system, and most consumers still don't have EMV cards from their credit card processor.
The bigger risks for online merchants is the increasing number of streamlined mobile checkout methods, as well as buy buttons that are built into email and social media accounts. These platforms allow consumers to buy a product on their mobile devices without leaving them.
Merchants are trying to simplify the process through streamlined checkout and purchase buttons because of the shift by the consumers to mobile devices. But more often than not, they are sacrificing the security of their checkout process.
Desktop online websites have several layers of security controls, but mobile versions often have weaker and fewer methods to authenticate the identity of consumers. Mobile devices are still trying to beef up their protection, and there will be more security control in the future in the form of biometrics and other authentication processes for mobile e-commerce.
Other new forms of online frauds that victimize merchant services are online merchandise delivery and digital gift cards. According to statistics, downloadable gift cards account for 9.5 percent of attempted online fraud last year. It was followed by online purchases with next-day delivery with 6.5 percent.
Downloadable gift cards have become popular among millennials, and that's why there are being targeted by fraudsters. Small and midsize companies that offer digital gift cards have a high risk of fraud. Larger companies often have stronger security processes to protect their merchant services.
In case you haven't heard our announcement last month, Netcom PaySystem now offers many payment solutions that incorporate EMV payment capability. This means that merchants will now have devices they need to be EMV capable – delivering the latest in fraud prevention technology.If you're ready, so are we!
About Netcom PaySystem
Netcom PaySystem prides itself on being as eager to practice good, old-fashioned customer care as it is to pioneer new products. Netcom PaySystem is proud to provide the most up to date and innovative products such as m-Commerce Mobile Solutions, and Virtual Terminal solutions. In addition, the company offers the merchant access to POS Systems, ACH Check Services, Check Guarantee, Recurring Billing, Check21, BOC, Credit and Debit Card Processing, Gift and Loyalty Cards, and Merchant Working Capital. Netcom PaySystem's attrition rate is one of the lowest, if not the lowest in the industry. Netcom PaySystem can proudly boast that that only two to four percent of its clients ever leaves the company, and out of that; close to 50 percent return within the first year.
For more information, please visit http://netcompaysystem.com
Company Name: Netcom PaySystem
Company Address:100 Green Oak Dr. Roswell, Georgia 30075
Contact Person: Media Relations
Country: United States