Iovation releases financial services fraud report and new payments industry group launched at Money20/20
Risky transactions on mobile devices have more than doubled since 2017, and half of fraud now comes through the mobile channel, according to new research. A group of payments companies affected by this new threat environment by creating the Payments Risk and Fraud Consortium (PRFC) to share information to better understand and jointly combat complex financial fraud.
The “2019 Financial Services Fraud and Consumer Trust Report” has been launched by iovation at Money 20/20, based on analysis of billions of online financial services transactions screened by iovation and TransUnion, and a survey of more than 1,600 consumers. It shows 61 percent of transactions so far in 2019 have been carried out over a mobile device. Since 2017. total mobile transactions have increased by 30 percent, but suspected fraudulent transactions from mobile devices have grown by 138 percent.
Consumers are reacting to the increase in mobile threats too, with 72 percent saying account security and privacy are among their primary factors for deciding what institution to bank with or use a credit card from. Nearly two in three (64 percent) would switch to a new financial services company with more advanced security protocols in place, and 39 percent say they have already closed an account due to security and fraud concerns.
“Our research determined three key market drivers that will shape the financial services industry in 2020,” said Melissa Gaddis, iovation’s senior director of customer success. “Consumer trust is a competitive difference, fraud is going mobile mirroring consumer behavior and customer satisfaction is driven by the mobile platform.”
In its efforts to protect consumer trust in the payments ecosystem, the PRFC’s stated goals are to openly and transparently share data, analysis and insights about fraud, identify Key Risk Indicators (KRI) to measure the effectiveness of prevention, mitigation, and recovery, decrease the overall cost of dealing with fraud, leverage its collective knowledge base, and provide community perspective.
Founding members of the new Consortium include Advantage Payments Services, ENACOMM, Central Payments, FSV Payment Systems, Payment Solutions Consultants, and Womble Bond Dickinson.