How to deal with Risks in E-commerce
Merchants have realized that risks remain in the background when they try to find ways in balancing security concerns and customer ease in transaction. Fortunately, the emergence of technology provides some available choices to make the balancing process run smoothly for the merchants. However, it doesn’t mean they can escape the risks in their businesses. The growth in e-commerce has opened a new set of challenges in risk management.
When the balance has changed in revenue’s favor, the chance for fraudsters to steal money, merchandise, customers’ identities, and vital information of the business is higher since the security isn’t tough enough. This kind of situation has been discussed in ‘Mobile E-commerce: Friend or Foe’. The fact that organizations are vulnerable when it comes to today’s mobile fraud becomes the main concern in the discussion.
A study conducted in February by J. Gold Associates revealed that almost one-quarter of the participants do not adopt basic user authentication credentials. They tend to use challenge-based questions [44%], IP recognition [41%], and device ID [52%]. The small amount of participants adopt safer way in user authentications, such as using biometric logins [17%], soft tokens [20%], and text-based authentication [28%].
Some improvements in the basic user authentication credentials are expected to materialize in the years to come. 45% of participants will be expected to use biometric logins in the next three years, while 10% of participants keep on using usernames and passwords. Regardless, login technique improvement will strengthen the security of transactions, from detecting the users who are logged in to the used devices. Jack Gold from J. Gold Associates viewed that the improvement will lessen any type of fraud schemes on mobile transactions.