Javelin Strategy & Research Analyzes Retail Payments Fraud Prevention in the Age of Data Breaches and Malware
San Francisco, CA, July 30, 2013: In 2012, online retail payments reached 7.4% ($318 billion) of all retail transactions. The thriving online market is an increasing target for fraudsters to both steal and misuse consumer data as data breaches and malware evolve as the primary means to acquire this valuable information. Today, Javelin Strategy & Research released the firm’s first Online and Mobile Retail Payments Authentication report explores a variety of authentication options as well as consumer’s willingness to adopt these processes in future online and mobile shopping.
Most consumers are not familiar with authentication technologies for use during online retail payments, but that is about to change. While two-thirds of consumers say they are well-acquainted with static security questions, many merchants are apprehensive about introducing additional steps into the checkout process that may introduce friction and contribute to shopping cart abandonment. But, several emerging solutions offer less intrusive ways, such as advancements to the 3-D Secure platform and Fast Identity Online (FIDO) to authenticate consumers for online and mobile transactions.
“Yesterday’s fraudsters picking pre? approved cards from mailboxes could be compared to robbing a cash register. Today’s fraudsters are cleaning out the safe through data breaches and malware,” said Al Pascual, Senior Analyst – Security, Risk and Fraud at Javelin Strategy & Research. “Improved authentication is critical as fraudsters now have access to copious amounts of compromised personal information and payment data. Merchants need to surmount unfounded fears of consumer backlash as consumer familiarity will breed comfort and confidence in using newer, more secure authentication measures.”
Javelin Strategy & Research’s first Online and Mobile Retail Payments Authentication: Preventing Fraud in the Age of Data Breaches and Malware identifies challenges associated with authenticating online and mobile retail payments, consumer perception of authentication solutions and current and future options for retail payments authentication. It is based on three online surveys of more than 14,000 consumers. The report contains 35 pages and 13 graphs.
Learn More: Online and Mobile Retail Payments Authentication: Preventing Fraud in the Age of Data Breaches and Malware
About Javelin Strategy & Research
Javelin Strategy & Research, a division of Greenwich Associates, provides strategic insights into customer transactions, increasing sustainable profits for financial institutions, government, payments companies, merchants and other technology providers. Javelin’s independent insights result from a uniquely rigorous three-dimensional research process that assesses customers, providers, and the transactions ecosystem.
Media Contact
Nancy Ozawa
(925) 219-0116
marketing@javelinstrategy.com
www.javelinstrategy.com/research
