Internet mobile payments totaled to about USD 1.8 trillion in 2015, signifying that the mobile payments market has boomed in China, but so has the internet fraud.
With over 25 million mobile Internet users caught up in fraud cases, the security of mobile payment processors is now in question. Although the investigation primarily involves the Internet-based service providers, practices on the customers end may amplify the opportunities for fraud.
For instance, using the same password or code for multiple accounts would make it easier for fraudsters to hack them. Usage of unknown WiFi connections may also contribute to fraud.
Fake penalty notifications from legal departments and the police comprised a 38% of the total number of fraud cases. Fraudsters who tell mobile users that they are from customer service departments of the utilities or services they subscribe to are also responsible for millions of scam cases.
Nearly 12% of the said cases are related to gambling. Online payments associated with illegal business operations accounted for another 10%.
Meanwhile, Tencent has an ongoing process of compensating customers who are victims of online payment fraud. The condition for receiving compensation is that the reason behind the fraud must not constitute any negligence on the customers end.
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