According to a report conducted by the Centre for Economic and Business Research (Cebr) on behalf of UK online payment services provider PayPoint.net, the growth of mobile and social media commerce is expected to drive total online sales of GBP 33.7 billion by 2015, recording an annual growth of 4.5 percent.
The report has also pointed out that the number of internet users purchasing products via their mobile phones will rise by 5 million, reaching 10.5 million by 2015, while social media will register a 2.9 million users’ growth.
Nevertheless, these two channels will determine increased fraud risks because both require users to provide less information when making a purchase as compared to other channels. Furthermore, consumer unfamiliarity with the process allows fraudsters to scam. However, mobile browsers and apps are expected to be the biggest contributor to the fraud losses, costing GBP 24 million by 2015, the survey indicates.
Since its peak in 2008, the economic impact of e-commerce fraud has declined, falling by 16 percent in 2009 and a further 4 percent in 2010 as businesses have implemented safer payment mechanisms and fraud screening detection tools.
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