Trends
The number of businesses allowing mobile commerce has expanded beyond traditional mid-to-large in-store retailers to include small retailers selling digital goods (such as electronic gift cards, software and mobile apps) and mid-to-large retailers and e-commerce merchants selling physical goods. This, combined with increased international transactions and more automated botnet activity, serves to create a climate where fraud thrives.

According to the report, these trends make identity verification and balancing fraud detection with minimal customer friction increasingly difficult. Across retail and e-commerce mobile channels the greatest challenges include verifying customer identities, the inability to determine a transaction source and the failure to distinguish between human and malicious bots, the report notes.

"There currently exists a perfect storm of increased cross-border, digital and mobile fraud and executives are under pressure to deliver prevention solutions that stem escalating fraud losses," said Kimberly Sutherland, vice president, fraud and identity management strategy, LexisNexis Risk Solutions. "To effectively fight fraud, it's crucial that all merchants understand that there is no one-size-fits-all solution. There's no doubt that those using a layered solution approach involving identity authentication, transaction verification, digital identity tools and behavioral biometrics are better prepared to fight fraud."