This amount represents an increase of 22% over the anticipated spend for 2017, and is based also on the launch of 3DS 2.0 (3-D Secure 2.0), that would both reduce fraud and result in fewer basket abandonments, if merchants invested in authentication solutions as part of an FDP strategy.
Furthermore, the growing threat of insecure IoT (Internet of Things) devices would be key in driving FDP spend. Other factors influencing this trend include the evolution of IoT botnets from DDoS (Distributed Denial-of-Service) weapons aimed at fraud automation tools, owing to a requirement for better customer verification tools.
The study finally, it cited the upcoming PSD2 (revised payment services directive) and the move to open banking APIs in Europe, North America and Asia as a further driver. Open banking and APIs, despite the fact that they bring many opportunities for the fintech sector, could also expose a set of business logic rules that fraudsters might exploit, as our recent report on Open banking and APIs reveals.
In terms of regions, Juniper predicted that emerging markets, such as Latin America, Indian Subcontinent and Africa and Middle East would become key targets for banking and payments fraud. Collectively, these regions will account for only 4% of global FDP spend in 2022. The research noted that stronger regulation to protect consumers as well as better consumer education in safer online practices were key issues to address.
The report is called Online Payment Fraud: Emerging Threats, Key Vertical Strategies & Market Forecasts 2017-2022, and covers 8 key regions.
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