Payments Consulting Network was pleased to sponsor the recent Mobile Payments Forum held in Auckland from 17-18 February which examined the mobile payments eco-system and the factors influencing customers to go mobile. A core focus of the two-day Forum was the effect mobile payments are having as they become a real alternative to cash and card payment solutions.
Andrew Weaver, New Zealand Country Manager for Payments Consulting Network presented; Managing the risk of fraud in mobile payments; and shared his insights of cases involving credit card fraud in the US; fraudulent ATM withdrawals which resulted in thieves pocketing $45million in a matter of hours; internal theft in South Korea where credit card records were stolen from three firms; the recent Target and other retailer POS breaches in the US.
As payment technologies evolve, so too have the capabilities of the criminal. Card-not-present fraud, ATM fraud and data being compromised across borders are the leading fraud types today. Andrew outlined that understanding, planning and implementing fraud management strategies inherent in mobile payments is essential. The key is to balance risk and customer experience utilising technologies available
While mobile payments are a real alternative to cash and card payments it is essential that a cost-effective risk management strategy be implemented to prevent fraudulent behavior.
The starting point for customer authentication will be the same as for physical plastic, however the richness of Smartphone capability may lead us elsewhere Andrew explained. There were over 70 attendees at the Forum and the speakers presented a broad selection of topics covering the mobile payments space. From mobile banking, the telco perspective, loyalty and security concerns the Forum covered a variety of engaging topics.