More m-deals to raise anti- fraud tech demand

As browsing gets faster and better with smartphones, by the end of 2013, as much as 12.5 per cent of all e- transactions in India will be conducted through the mobile mode, forcing banks and other e- commerce providers to implement fraud detection capabilities, says IT advisory firm Gartner Inc.

“Because of the improving browser experiences on smartphones, mobile commerce and transaction execution are set to increase rapidly,” said William Clark, vice- president ( research), Gartner.

“ We estimate that by the end of 2013, 12.5 per cent of all e- commerce transactions will be mobile,” Clark said.

As per the Gartner report, given the explosive growth of smartphones and increase in mobile commerce and the consequent migration of fraud attacks to these devices, using mobile frauddetection techniques in mobile commerce environments is an imperative.

Gartner says this is forcing banks, social networks and other e-commerce providers to implement the kind of fraud detection capabilities that have become mainstream with fixed-line computing. “By 2013-end, location information or profile information from mobile phones would be used to validate 90 per cent of mobile transactions,” Gartner says.

The report points out that the evolution of fraud detection tools would play a part in turning mobile commerce into location- and context-aware commerce by increasing the confidence of businesses, financial institutions and end-users.

According to Gartner estimates, 70 per cent of the largest 20 global card issuers would gradually adopt mobile context information to help detect fraud on fixedline transactions. As a result, by 2015- end, more than 15 per cent of all payment card transactions will be validated using context-aware profile information.

“Enterprise applications must detect fraud in these mobile environments, but fraud detection tools available today that work in fixedline computing environments does not work well or at all in the mobile world,” Clark said.

“There are a number of methods that can be implemented to help enterprises detect fraud in the mobile space. But these are still in their early stages of development. It will take until at least 2012 for these to transform to technically mature systems that work easily and transparently across disparate mobile networks,” he adds.

“ Enterprises that want to remain competitive in electronic commerce over the next five years should begin exploring context- aware applications by 2011- end for both fraud detection and later on for customer acquisition and retention activities afforded by personalised and customised marketing and advertising information,” Gartner says.