You don’t want to lose money due to online fraud, do you? Then you better buff up your FDP-solutions, because retailers are expected to lose $ 130 billion in CNP-fraud in just the next 5 years.

As online shopping and digital solutions are becoming more common, we are also seeing a rise in online fraud, and the no-good-doers are getting more creative every day. As an online retailer, you, therefore, need to increase and expand your Fraud Detection and Prevention (FDP) measures in order to keep the bad guys at bay and prevent your business from sustaining heavy losses in the upcoming years.

Catching fraudsters with their hand in the digital cookie-jar simply isn’t as easy as it used to be.

If you are like most eCommerce merchants, you have probably focused mainly on detecting fraud at the point of transaction. This makes sense since this used to be the place where fraud was common, and it’s was also fairly easy to detect certain types of fraud there. But nowadays the fraudsters have become better at hiding their intentions, and you need to look for suspicious behaviour earlier during the session in order to identify them. Catching them with their hand in the digital cookie-jar simply isn’t as easy as it used to be.

The reason why most online retailers don’t invest in a multi-layer FDP is that it seems like a waste of money. There is a perception that an advanced system like that can only detect fraud, and thus it makes little sense investing in a costly system that only does one thing. It can sometimes also be hard to calculate the exact amount of money lost to fraud, so calculating the ROI of such a system becomes trickier. But now that a recent study from Juniper Research indicates a potential loss of $ 130 Bn the coming five years in Card Not Present (CNP) fraud alone, getting a better system might prove to be a good investment after all.

There are also added benefits of having a better FDP-system in place. One of the authors at Juniper Research, Steffen Sorrell, explains, 

A layered FDP solution naturally helps directly preventing fraud, but it also offers major gains in terms of recovering potentially lost revenue through false positives. This is something about which retailers remain undereducated, and has allowed fraudsters to capitalize on relatively low FDP spend,”

Online-shoppers love a retailer they can trust

This means that a well implemented FDP-solution will quickly earn its money back. And not just by preventing fraud, even though the staggering losses Juniper Research calculate might be enough already, but also from increasing consumer-trust.

So, by having a multi-layer FDP you can build a secure and trustworthy shopping experience for your customers. And trust me when I say this: online-shoppers love a retailer they can trust. If you are worried about the ROI, fret no more, buffing up your anti-fraud system will quickly prove to be a good investment for both you and your customers.

A new market segment is rapidly emerging within the tech sector that perhaps is one of the fastest, if not the fastest, segment of market growth – mobile security software and services.

Mobile transactional security and cyber defence has become increasingly critical since companies continue to collect, handle, and store enormous amounts of confidential information and sends that data across networks – many of them scarily unsecure and unprotected. There is also a “bring-your-own-device” (BYOD) culture in almost all modern companies today and that is one reason cyber security is crucial for all points in the network, including smartphone connectivity. Cyber security is not just a matter for the IT-department anymore, but for all executive decision makers in a company.

“Protecting mobile devices is in fact harder than to protect a traditional company IT environment”, says Peter Alexandersson, CEO of mobile security company Covr Security.
It’s because employees have personal control over their own device and can choose to download any type of app and can decide what protection to use – or in worst case, not use.”

What is driving the growth in cybersecurity?

Cybersecurity isn’t new, but it’s definitely a red-hot area when it comes to protecting mobile devices. The ransomware epidemic and sensational rise in cybercrime has in recent years leapfrogged from PCs and laptops to smartphones and other mobile devices affecting companies and consumers resulting in catastrophic losses globally. So, there is a snowballing demand for secure mobile transaction solutions across all industries world wide which is, according to most analysts, expected to drive massive market growth in the coming years. One well-known example is Bank of America that has said that they have an unlimited budget when it comes to fighting cyber attackers, fraud and hackers.

“Every year, banks and other financial players are spending enormous amounts of money to stop fraud”, Peter Alexanderson continues. 
“And every year, their losses multiply. This is why the solution to combat cyber crime, especially for mobile devices, has to be more holistic than just installing security software on a server. This is exactly the reason we have developed Covr.”

Peter Alexandersson, CEO COVR Security

According to an article in Forbes market research firm Cybersecurity Ventures expects that companies will spend more than $1 trillion over the next five years in cybersecurity for PCs, mobile devices, and Internet of Things (IoT) devices. In addition Business Insider’s research service BI intelligence has estimated that $113 billion will be spent on protecting mobile devices alone. A recent compilation article from Nasdaq also discloses that Bloomberg and IDC considers mobile security to be one of three that has the biggest market growth potential.

A glimpse into the near future for the market

As companies and consumers grow increasingly nervous about new and gruesome cyber threats entrepreneurs rush to develop a multitude of innovative solutions – and venture capitalists are (sad to say?) seeing big openings here and pour money into the sector.  While most tech industry sectors are operating on a more mature market with big competition, forced to improve profitability – cybersecurity is driven by online fraud, crime and felonies where innovation needs to evolve quickly to keep up with elaborate new threats.

New and innovative solutions, Covr in particular, guarantees extreme protection from advanced epidemic threats like phishing, malwares, viruses, network spoofing, connection to unsecure public networks and inadequate company policies for data protection. According to the predictions in this article we firmly believe that Covr is in pole position to protect enterprises and individuals on a large scale.

It’s spine-chilling to imagine that sensitive information about you could have been accessed by a cybercriminal or published somewhere on the public or dark web, isn’t it? Regrettably, the chances are that this has already happened.

With the apparently endless bombardment of malware and phishing attacks, navigating the digital world is a risky business. The nagging and constant feeling of unease is the reality for almost every person using any type of online service – and today that is all of us. If people don’t know which information that is sensitive, and which isn’t, where their information is stored and who has access to their data, then they are in a dangerous position from a cybersecurity perspective. Perhaps we should delete our Instagrams, stop sending emails, uninstall our banking apps and move to a desert island? This common fear is a very real challenge for companies that handle their users’ credentials. Everything relies on security – no matter what trade a company is in – they are all in the trust business.

Despite arduous efforts to continuously reinforcing security, data protection is only as strong as its’ weakest link, no matter how many precautions that are taken to keep users safe online. As it traditionally has been expensive to invest in security soft- and hardware, recruit data security experts or employ entire data security departments one fallback, especially for online retail, has been to just rely on credit card issuers or the banks’ security systems to handle it all. Some services still even offer only one-factor authentication in the form password “protection” (we put the word “protection” in quotation marks as passwords are useless when it comes to online security).

Cybercrooks can decipher even the longest, most complicated password imaginable within minutes.

However, more and more companies have started to offer their users two-factor authentication (2FA) via a second channel – the mobile device. Not long ago text messages were used for this purpose (and still are in too many cases). Okay, the least difficult way to implement two-factor is with SMS, where the user receives an access code each time they log in to a secured account. And of course this is better than nothing, but 2FA via SMS has an abundance of drawbacks (but that is another blog post). One of them is that hackers nowadays can “reroute” the two-factor SMS notifications to their own devices by hijacking your SIM-card and stealing your phone number.

For better protection, digital giants like Google and Microsoft are now instead of pushing for their Authenticator apps, which, sorry to say, just work within their own systems. Authentication over a mobile app relies heavily on several pieces of the puzzle falling in place and most security apps today are not user-centric, i.e., user-friendly or intuitive. This is where Covr differs, its beauty is in its simplicity: not only does our app build on unique multi-factor, second channel out-of-band authentication – it also caters for an easy journey for the user. Instead of having to login into applications one by one as with other authentication apps, Covr’s centralized single sign in and user authorization system needs only one set of login credentials that can be used to access numerous applications.

Just tap “Yes” or “No” and Bob’s your uncle.