Mobile and social media based fraud is going to have a big impact on UK retailers, PayPoint.net has warned.
According to the internet payment service, anti-fraud schemes run by mainstream card-issuers didn’t stretch to mobile phone apps or social media, meaning that retailers and consumers who traded on such platforms were more at risk.
Michael Norton, managing director at the company, expected media “fraud to push up fraud” by 18 per cent over the next four years.
Mr Norton said: “One of the key reasons for this is that two of the big anti-fraud schemes run by Visa, MasterCard and other card-issuers, aren’t available for mobile apps and social media sites.
“This means far less protection for the retailer and correspondingly greater risks for consumers.”
One of the reasons that fraud risks are higher online is that users need to provide less information when making purchases.
According to research by PayPoint.net, mobile and social media shopping will drive online fraud to grow to the value of £195.3 million by 2015.