selling boom leaves US retailers exposed to fraud
recent survey has revealed that mobile is the fastest growing sales channel in
the US – but fraud prevention practices are failing to keep up, leaving
retailers exposed to a constant threat.
The Volumatic Kount US Retail Fraud Survey 2013, which interviewed 100 of North
America’s leading retailers, revealed that 34% of retailers now use this sales
channel with a further 20% planning to add a mobile sales channel in the next
year or two.
The Survey, commissioned by retail consultancy Retail Knowledge, stated: “Mobile
channels offer a new opportunity for fraudsters and in conducting these
interviews we got a sense that loss prevention processes and technologies are
not keeping pace with new mobile options”.
The Volumatic Kount US Retail Fraud Survey also highlighted that analytics and
monitoring was a top concern and that some 17% of those retailers that trade
online do not use any systems for analytics and monitoring. It seems as if many
of those using some sort of system are not entirely convinced about its value or
The Survey also revealed that 39% of retailers that trade online do not use
fraud management external systems at all, regardless of sophistication.
Paul Bessant, CEO of Retail Knowledge, said: “Retailers are still not taking
their mobile offering seriously when it comes to fraud. Online presents vast new
opportunities for fraudsters. Despite the growth in the mobile sector, the
survey has highlighted that retailers are not adapting their Loss Prevention
strategies fast enough to counter the growing threat from cybercrime”.
The Volumatic Kount US Retail Fraud Survey 2013 was sponsored by intelligent
cash handling specialists Volumatic and payments experts Kount. It was carried
out by researchers at Martec International, who interviewed 100 of North
America’s leading retailers – representing over a fifth of the North American
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