A little vigilance helps retailers reduce and prevent three of the most common kinds of mobile app fraud
Consumers love paying for goods and services with their smartphones. But as more retailers release their own mobile apps with in-store payment options, the threat of fraud must be carefully considered. Retailers offering in-store purchasing through a mobile app should be aware of major card-not-present fraud schemes.
Let’s imagine a fictitious retailer called Smoothie Shop; its mobile app allows saves customers' credit card information to facilitate in-store purchases. And that opens the door to at least three kinds of potential fraud.
In the first scenario, the fraudster takes over an existing Smoothie Shop account. Since the account already has a credit card saved in the app, the fraudster can simply walk over to a Smoothie Shop, present the mobile app with the saved credit card information, and enjoy a refreshing smoothie that was paid for with someone else's stored credit card.