The average smartphone user uses 10 different mobile apps a day—which means your mobile app is always fighting for attention. Competition is stiff, which is why brand trust has become an important differentiator. The essential ingredient to earning trust? Building a safe mobile environment for your users.
As more users look to mobile apps to streamline their daily lives, fraudsters too are devising new ways to target popular apps. Using malicious tools to create fake accounts is just one way fraudsters exploit mobile apps, and these fraud techniques are becoming increasingly sophisticated.
Allowing fraud to run rampant on your mobile apps puts both your business and users at risk. A single incident is all it takes for your users to lose trust in your platform. And trust, once broken, is difficult to rebuild.
Unsafe user environments can erode user trust
The ramifications of an unsafe user environment go far beyond financial losses, often affecting brand reputation and user confidence.
Suppose your user hails a ride through your mobile app, with the driver stated to arrive in a minute. But ten minutes have passed, and he still hasn’t shown up. Here’s an example of how fraudsters game your algorithms—they use location spoofers to appear near popular hotspots, gaining preferential access to bookings over other drivers. This leaves both users and honest drivers frustrated over the long wait for bookings, leading them to lose trust in your platform.
Or picture this—fraudulent suppliers taking advantage of your platform by setting up fake storefronts. By creating fake accounts and falsifying reviews, these fraudsters end up ranking as the top vendors on your app, misleading your users into thinking that they are trustworthy picks. This causes your users to buy products of poor quality or ones that never arrive.
Though financial losses from fraud attacks are almost guaranteed, the more crucial consequence is an erosion of user trust. A study by Cognizant found that around 40% of users are likely to switch to competitor platforms due to trust issues. Thus, the responsibility falls on you to mitigate fraud attacks or risk losing your users.
Building a safe mobile environment for your users
Fraudsters are always on the hunt for ways to exploit your platform. As new fraud tactics emerge, adopting a strong trust and safety mindset across your team is essential to build a safe user environment.
One way to do this is by monitoring abnormal user behaviour on your mobile apps. This helps you spot the gaps in your defences and better understand exactly where your app is vulnerable. You can then decide whether to:
• Develop or further enhance your in-house fraud prevention system
• Partner with third-party fraud solution providers
• Do a hybrid of both
Businesses with a multi-layered fraud prevention strategy often partner with fraud solution providers on top of their existing in-house solutions for access to global datasets and risk intelligence.
Here at SHIELD, we believe that having robust risk intelligence is vital to fight evolving fraud. By providing our partners with risk intelligence powered by a global intelligence network, we help them detect emerging threats and block fraud attacks before they even happen.
Brand trust and user safety go hand-in-hand
Don’t learn the hard way. Building a safe user environment can help your mobile platform better weather the ever-evolving tactics of fraud and abuse. In the long run, trust between you and your users can manifest into strong brand loyalty, which will speak volumes for your business in terms of both revenue and reputation.
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