Staying Ahead of Fraud with Mobile SDKs

By Peekay Chan, iovation February 12, 2016

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It’s certainly no secret that the exploding use of mobile devices continues to pose a significant threat to businesses across the globe.

What many organizations don’t realize, however, is that there are proven mobile-specific solutions available today – called Mobile SDKs (software development kits) – that can help them effectively combat fraud.

First, let’s look at the numbers. According to proprietary data from iovation, the use of mobile applications and mobile Web rose steadily throughout 2015 and is showing no signs of letting up. In January, traffic originating from mobile SDKs (mobile apps) accounted for 11.42% of all traffic, while traffic from mobile Web (mobile device browsers) accounted for 23%. In November, the traffic from mobile SDKs had risen to nearly 17% of all traffic, and mobile Web had climbed to more than 27%. 

Even more telling, recent iovation data revealed a significant increase in mobile transactions at the outset of the holiday shopping season, from Black Friday to Cyber Monday. Nearly half (48%) of all retail online transactions over the Thanksgiving weekend were made using mobile phones or tablets (mobile SDK and mobile Web combined). This represents a 17% spike over the average mobile traffic the rest of the year.

By taking advantage of mobile SDKs, companies can integrate thorough, built-in protection against high-risk fraud such as:

  • Jail broken iOS or rooted Android devices which can indicate high risk behavior.
  • Location-based anomalies that compare the IP address, network-based information and GPS data.
  • Use of virtual machines or emulators.
  • Mismatches between operating system versions and model.
  • Conflicts between app and device orientation.

A mobile SDK can be easily added to a mobile app at key integration points to collect information about your end-users’ devices, which minimizes the need for invasive step-up authentication for your customers. As a result, you can streamline the overall experience for your customers while providing your business with the peace of mind and confidence you’re looking for.

About the Author

Peekay is iovation's mobile guy. He has a B.S. in Computer Engineering from OIT and M.S. in Management in Science & Technology from OHSU. He's launched products in digital advertising for the cable and mobile industry and managed open source OS projects Android and Tizen. When he's not eating, drinking and breathing mobile, Peekay coaches elementary school kids to compete in LEGO robotic tournaments.