Electronic Retailer - March 2012 - 33

in Mobile Retail
web interface and the security of existing PCI compliance and webbased payment workflows. Rather than trying to replicate security measures in an app, play it safe and “webify” transactions that are prime targets for fraud. 5. Periodic Transaction Reviews: Far too many electronic retailers lack clarity regarding their existing transaction patterns. In some cases, perfectly legitimate mobile transactions are being rejected by outdated security procedures. Meanwhile, those same security procedures may be rolling out a red carpet for fraudsters. For example, fraudsters often target loose fraud prevention rules by changing browser settings and making PCs look like mobile devices – underscoring the need for comprehensive and periodic transaction and rules reviews.

eventually be breached. For example, iPhone app developers routinely pin their security hopes on iPhone UDID, a unique hardware identifier that recognizes returning customers. But since jail-broken iPhones can easily spoof UDID, it’s essential for retailers to create multiple layers of fraud prevention rather than relying exclusively on iPhone UDID or any other single security barrier. 2. Central Fraud Intelligence: It’s not uncommon for companies to deploy separate teams and technologies to address their mobile and web channels. However, decentralization handicaps effective fraud intelligence. To ensure seamless fraud prevention and leverage cost efficiencies, fraud intelligence should be consolidated across the same risk engine. 3. Mobile Profiling: Experts in mobile fraud prevention know that profiling can be an effective anti-fraud strategy, provided it is utilized in a manner that is tailored to the mobile channel. Since mobile locations create a reliable user signature, mobile

No Magic Bullets
Retailers have a lot on their plates and for many sellers, combatting mobile fraud is just one more item on an already long to-do list. But with mobile retailing gaining traction among consumers, mobile fraud prevention has to become a first-level priority, especially for electronic retailers eager to establish trust with mobile consumers. The simple truth is that there is no single magic bullet to combat retail fraud in the mobile realm. Even though many mobile fraud preventions strategies may seem like common sense, the challenge is for retailers to recognize the unique threats mobile-based fraud poses and to enact a range of measures that balance consumer expectations against the need for more vigorous security in the mobile channel. Alisdair Faulkner is chief products officer at ThreatMetrix, a leading provider of cloud-based fraud prevention solutions. 33

GPS technology can be leveraged to generate security-based apps with profiles based on daily patterns. The downside is that consumers must be willing to sacrifice a certain amount of privacy, allowing retailers and financial institutions to gain locational user insights on a limited (but not ongoing) basis. 4. Transactional “Webification”: Mobile apps offer a high degree of value to consumers. When deployed appropriately, they can forge important connections with consumers and enhance the brand experience. But high-risk activities like money transfers or transaction authentications shouldn’t be app-based. For these and other high-risk transactions, retailers should retreat to a mobile

March 2012 | electronicRETAILER



Electronic Retailer - March 2012

Table of Contents for the Digital Edition of Electronic Retailer - March 2012

Chasing Shadows in Mobile Retail
Calendar of Events
Industry Reports
eMarketer Research
IMS Retail Rankings
Jordan Whitney’s Top Categories
Lockard & Wechsler’s Clearance & Price Index
Cover Story CarMD Makes a DR Diagnosis
Selling in a Fragmented World
Case Study DR Marketing North of the Border
Advertiser Index
Bulletin Board
Classifieds
Electronic Retailer - March 2012 - Calendar of Events
Electronic Retailer - March 2012 - cover2
Electronic Retailer - March 2012 - 3
Electronic Retailer - March 2012 - 4
Electronic Retailer - March 2012 - 5
Electronic Retailer - March 2012 - 6
Electronic Retailer - March 2012 - 7
Electronic Retailer - March 2012 - 8
Electronic Retailer - March 2012 - Industry Reports
Electronic Retailer - March 2012 - 10
Electronic Retailer - March 2012 - 11
Electronic Retailer - March 2012 - 12
Electronic Retailer - March 2012 - 13
Electronic Retailer - March 2012 - eMarketer Research
Electronic Retailer - March 2012 - 15
Electronic Retailer - March 2012 - IMS Retail Rankings
Electronic Retailer - March 2012 - 17
Electronic Retailer - March 2012 - Jordan Whitney’s Top Categories
Electronic Retailer - March 2012 - 19
Electronic Retailer - March 2012 - Lockard & Wechsler’s Clearance & Price Index
Electronic Retailer - March 2012 - 21
Electronic Retailer - March 2012 - 22
Electronic Retailer - March 2012 - 23
Electronic Retailer - March 2012 - Cover Story CarMD Makes a DR Diagnosis
Electronic Retailer - March 2012 - 25
Electronic Retailer - March 2012 - 26
Electronic Retailer - March 2012 - 27
Electronic Retailer - March 2012 - Selling in a Fragmented World
Electronic Retailer - March 2012 - 29
Electronic Retailer - March 2012 - 30
Electronic Retailer - March 2012 - 31
Electronic Retailer - March 2012 - 32
Electronic Retailer - March 2012 - 33
Electronic Retailer - March 2012 - Case Study DR Marketing North of the Border
Electronic Retailer - March 2012 - 35
Electronic Retailer - March 2012 - 36
Electronic Retailer - March 2012 - 37
Electronic Retailer - March 2012 - 38
Electronic Retailer - March 2012 - 39
Electronic Retailer - March 2012 - 40
Electronic Retailer - March 2012 - 41
Electronic Retailer - March 2012 - 42
Electronic Retailer - March 2012 - Bulletin Board
Electronic Retailer - March 2012 - Classifieds
Electronic Retailer - March 2012 - 45
Electronic Retailer - March 2012 - 46
Electronic Retailer - March 2012 - cover3
Electronic Retailer - March 2012 - cover4
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