As society becomes increasingly reliant on smart technology over the next few years, strong mobile identity verification will become imperative for businesses. That’s because as more people rely on mobile devices to interact with businesses, it will create a massive uptick in mobile fraud.
In fact, a study from market research firm J. Gold Associates predicts that mobile fraud will nearly double by about 2017. What’s the main reason? It can be attributed to a lack of cohesive security.
Consider the fact that of the 250 organizations surveyed, just 8 percent said that they had no losses from fraud over the past year. The rest weren’t so lucky. While 34 percent of respondents lost up to 5 percent of revenues, 14 percent lost as much as 10 percent and 15 percent admitted to losing as much as 25 percent of revenues. That means that nearly a third of all enterprises that participated in the study lost over 10 percent of their revenues last year to fraud. That figure alone should stop executives dead in their tracks.
Unfortunately, there’s more bad news. Just 33 percent of the organizations surveyed said they generate revenues from the Internet, with 25 percent of those relying on a mobile application. That percentage is certain to climb over the next couple of years as the marketplace for mobile apps expands and revenues grow. That’s actually good news.
What’s scary is the number of new enterprises that will be exposed to fraud and data breaches. While roughly 20-30 percent of new fraud incidents are due to mobile devices, that figure could double over the next few years unless something significant changes. Given that the average mobile loss was $92.3 million last year, a significant amount of revenue is at stake.
As mobile e-commerce continues to expand, enterprises must rely on mobile voice biometrics and other cutting edge security technologies to ensure their survival. You can learn more about how VoiceVault can keep your organization’s data safe by clicking here.