Into Thin Air: Average Company Loses $92.3 Million Annually to Mobile Fraud

Last week, mobile identity company TeleSign and RSA, the security division of EMC, published a report on major corporations’ losses due to fraud carried out on mobile devices. The survey also asked companies about what kind of authentication mechanisms they were currently using, as well as the preferences of their customers. 

The survey asked 250 companies from across a wide spectrum of industry verticals, with average revenues of $2.5 billion.  While the average loss due to mobile fraud was $92.3 million, accounting for roughly 3 percent of revenues, some companies reported that they lost as much as 25 percent of revenues due to mobile fraud.

That’s high.

What are these companies doing to provide stronger authentication and security for their customers and employees?  Unfortunately, only 17 percent reported using biometrics, but hopefully, this will change, as 47 percent of respondents said they were planning to require it in the future.

AGNITIO’s KIVOX Mobile 5.0, with Voice ID technology, is able to perform natural speech authentication to accurately identify users and protect against compromise or fraud.  The solution offers consumers not only security but also privacy and convenience.

Additionally, KIVOX Mobile 5.0 in embedded devices eliminates the need to communicate with servers, thereby minimizing risks associated with scaled attacks and centralized storage of personally identifiable information – giving end users greater peace of mind.

AGNITIO is committed to providing solutions for easy-to-use, yet strong authentication through the use of voice biometrics.

With the increasing reliance on mobile commerce and transactions, fraudsters are never far behind. AGNITIO concurs with the report authors that in the coming 2-3 years, next generation authentication technologies like biometrics will largely replace the user name and password as the primary method of authentication.

Posted by Andrew Humber, Senior Director Marketing Communications
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