Boston, November 30, 2011 – A new report from Aite Group examines perceptions about mobile banking security and outlines various fraud mitigation techniques that are in use and on the horizon for the mobile environment. Based on an Aite Group survey of 24 global risk executives conducted at the FICO World 2011 conference in November 2011, the report is the third in a five-part series on online- and mobile-fraud mitigation in financial services.
The mobile channel has proven difficult to secure due to the wide variety of mobile devices and operating systems. Though most financial institutions currently experience little in the way of mobile fraud, this will change as mobile banking adoption continues to rise and higher-risk functionality is deployed to the mobile channel. The consensus among respondents is that potential fraud in the mobile channel is a significant cause for concern. In anticipation of increased fraud in the mobile channel, a large majority of survey respondents expect to deploy increased fraud-prevention technology over the next two years.
“Mobile banking is rapidly increasing its penetration and capabilities, and fraud mitigation capabilities must keep pace,” says Julie Conroy McNelley, senior analyst with Aite Group and author of this report. “Financial institutions should be prepared to deploy the same type of layered fraud mitigation for mobile that is applicable to the online channel, as the threat environment largely stems from the same sources.”
This 21-page Impact Note contains 16 figures. Clients of Aite Group’s Fraud & AML service can download the report.