With profit margins shrinking, the "digital marketplace" model could be a real opportunity for telcos - but the model is not without risk.
Today, every dollar of fraud represents an overall cost of USD 3.40 for eCommerce and digital goods retailers, taking into account management and compensation expenses. And mobile channels cause particular concern, with higher average fraud costs than other channels.
Combined with the growing number of mobile payment enabled devices, this creates the need for telcos to closely examine their fraud risks and implement a future-proof fraud prevention strategy.
Understanding the mobile channel
While a relatively small percentage of online transactions (around 10%) come through the mobile channel today, this channel accounts, on average, for more than 50% of fraud costs.
Telcos need to understand the specific challenges for protecting mobile payments and implement fraud prevention strategies that recognize the unique features of this channel.
So rethink fraud prevention to take full advantage
At ACI Worldwide, we have been tackling fraud for leading telcos for nearly two decades. Our team helps leading telcos identify and address specific areas of concern to their business, increase conversion rates and protect genuine customers while reducing fraud.
For more information, download our whitepaper today.
