Risk Managers alerted to security concerns as smartphone adoption soars; Mobile payments expected to exceed $300 billion by 2013
Scottsdale, Ariz.— 19th November, 2009—41st Parameter Inc., the leading provider of fraud detection and prevention technology, forecasts increased mobile channel cybercrime and decreased effectiveness of traditional anti-fraud tactics, attributed to the rapid adoption of new mobile handsets and multiple operating systems. According to a November 2009 consumer study of U.S. mobile phone users, 18.9 per cent of mobile consumers now use a smartphone, and an additional 49.2 per cent plan to purchase an advanced mobile device within the next two years. Last week, Gartner reported smartphone sales in Q3 2009 grew 12.8 per cent year over year, reaching 41.1 million units.
"The mobile channel is the fastest growing segment of the Internet today. For companies looking to increase their audience potential, conducting business with billions of mobile handsets is compelling," said Ori Eisen, founder and chief innovation officer of 41st Parameter. "Unfortunately, the mobile channel is equally appealing to cybercriminals, as traditional fraud deterrents won’t identify or differentiate between the growing varieties of smartphones."
While the use of mobile devices for transacting online continues to be an increased potential source of fraud, another tactic exploits the explosion of newly created dedicated mobile sites as a prime target of fraudsters in the near term. A recent whitepaper on the tactics perpetrated against the mobile channel titled "Mobile Banking – An Easy Target for Fraud" is available by request at http://www.the41.com/land/MobileFraud.asp.
41st Parameter actively contributes as the security and risk advisors to a number of fraud prevention committees including the Financial Services Technology Council (FSTC) Mobile Payments and Banking Project.
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About 41st Parameter
41st Parameter provides solutions for detecting and preventing fraud across multiple channels for the world’s most valued and recognisable brands. Leading financial institutions, and e-commerce companies, and travel services businesses rely on 41st Parameter’s technology to protect them from cybercrime threats including card not present fraud, new account origination fraud, phishing and account compromise, credit bust outs, and fraud ring attacks. Founded in 2004, 41st Parameter makes the process of detecting and preventing fraud easier and more effective, reducing both expenses and potential losses. As a leading web fraud detection innovator the company supplies industry-proven solutions which integrate advanced device identification with comprehensive risk management capabilities. To learn more about 41st Parameter, visit www.the41st.com