Android users most at risk of fraud warns survey
The rate of mobile fraud is highest on Android devices, according to new data from cyber security company Kount, with mobile fraud also outpacing that of online and in-store fraud for the first time this year. The data also shows that average transaction amounts on iOS mobile devices are greater than those made from Android devices.
Kount analysed data from over 100 million transactions across various devices from its merchant customer base spanning from 2011 to June of 2015. Merchant industries include digital goods, multi-channel, online games, retail, travel, telecommunications, among others. The company found that fraud is rising, as mobile fraud between 2011 and 2015 to date increased by 81%. The fraud rate for non-mobile transactions decreased by 50% from 2011 to 2014 and in the first six months of 2015, the fraud rate dropped another 50% from 2014, largely due to the sharp increase in mobile transactions.
While the rates of fraud on Android devices has not always exceeded that of iOS devices, this trend shifted in 2013, when Android overtook iOS. In fact, fraud rates on iOS devices have steadily decreased since Kount began tracing the data in 2011. On Android devices, fraud rates increased between 2011 and 2013, and has held steady since 2014. In 2011, fraud on iOS devices was greater than Android devices by 45%. In 2012, the gap closed to nine%. In 2013, the fraud rate on Android devices was higher than on iOS by 17%, which grew to 44% in 2014 and it remains at 44% for the first six months in 2015.
“With consumers increasingly transacting on mobile and the adoption of EMV technology in the United States, we expect to see mobile fraud rates continue to increase versus online and in-store purchases,” said Don Bush, vice president of marketing at Kount. “Merchants may be implementing increased fraud protection measures for online and in-store transactions, but they’re still playing catch up when it comes to mobile fraud protection. It’s imperative that retailers – and everyone in the retail and financial sectors – understand the myriad risks with mobile transactions and take the necessary steps to put mobile-specific fraud protection in place.”
Kount’s data also found the following:
Average transaction amounts on iOS devices consistently have been higher than those made from Android devices
In 2011, iPhone purchases ($76.39) were $28.27 greater than those on Android phones ($48.12), while iPad purchases were highest at $107.13.
In 2014, the gap continued to widen, with iOS phone average transactions ($124.47) almost $60 more than those on Android phones ($65.22), and iPad average transactions increasing to $164.19.
The trend continues within apps: the average transaction amount in 2014 in Android apps was $2.24 lower than within iOS apps.
Average online and in-store transaction amounts were greater than those on mobile devices overall until the first six months of 2015 in which purchases on the iPhone ($129.94) and iPad ($164.19) began to exceed non-mobile transactions ($106.94).
“While trends demonstrate certain operating systems have higher rates of incidence, mobile fraud is not limited to any one type of phone, tablet, or transaction,” continued Bush. “Before companies can effectively stem fraud, they must first identify the origin and device type behind each mobile transaction and take the necessary steps from there. We anticipate the shift to EMV in the US this fall will lead to a decrease in-store fraud, but also expect that fraud will continue to shift to mobile channels.”