In Mobile Fraud Fight, Convenience Trumps Security

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Mobile device fraud is climbing with consumer adoption of the technology, according to a joint study released by payments technology company Jumio and Harris Interactive.

Though the news sounds like common sense, the report quantifies the size and the scope of the issue. Among other factoids, this year's Consumer Mobile Insights study found that 83% of respondents worry about identify theft; roughly one in four have reported being a victim of online or mobile fraud; and about 60% of those surveyed plan to continue to use their mobile devices more for checking balances and paying bills in the future.

The survey was conducted over several days in March, and sampled a nationwide group of 2,130 smartphone and tablet users, according to a release.

"Two in every three Americans uses smartphones or tablets, according to our research, and are increasingly using them to conduct important daily activities — from online banking to paying bills on the go. This adoption continues to grow in the face of increasing mobile fraud, and related concerns have clearly not kept smartphone users from participating," said Daniel Mattes, Jumio's founder and chief executive, in the release. "Users may be willing to accept risk now in favor of convenience, but this tolerance will weaken as fraud continues to grow. The industry needs to get on board to protect our customers as much as the customers themselves need to take greater precautions."

The report also cites recently released CyberSource Corp. statistics. The division of Visa said online fraud has cost merchants an estimated $3.5 billion last year — up about 3% from 2011.

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