Small merchants that accept at least one type of payment using a mobile payment option rely on fewer fraud prevention solutions than larger merchants do, according to a recent study published by LexisNexis and Javelin Strategy & Research. A lack of adequate fraud prevention solutions opens up these businesses to the schemes of cyber thieves.
Credit card fraud is one of the largest threats merchants that accept mobile payments face. While offering mobile payment options enhances the customer service that companies can offer, it also exposes businesses to new opportunities for payment fraud, including identity theft. To prevent payment fraud, businesses should implement several fraud prevention solutions, including PIN and signature authentication, and browser and malware tracking.
The study revealed that large merchants use as many as four fraud prevention tools, whereas small businesses typically use just two. As a result, large merchants are able to prevent nearly eight times as many fraudulent transactions as small merchants.
For more information on identifying and understanding the cyber risks that could affect your business, contact Warren G. Bender Co. today.