Fraugster report: EUR 80 bln lost to online fraud in 2021

Thursday 21 July 2022 13:36 CET | News

Payment intelligence company Fraugster has announced the publication of its first Payment Intelligence Report 2022, which concluded that around EUR 80 billion were lost to online fraud across physical and digital goods and e-ticketing in 2021.

The new report provides insight into key compliance, fraud risk, and revenue uplift trends on the market and has gathered data from 60 billion data joints and over 80 million individual transactions across the previous year. Findings highlighted the latest fraud tactics deployed by Payment Service Providers (PSPs), Buy Now, Pay Later (BNPL) companies, suppliers, and merchants in fields like travel, physical, and digital goods to fight against chargeback fraud and digital fraud.

Fraugster found out that companies faced a 109% surge in Identity fraud, as well as a 70% rise in gift card fraud, while account takeover (ATO) attacks increased by 52%.

The report states that the total direct fraud losses for digital goods (including gaming, gambling, and gift cards) amounted EUR 3.5 billion in 2021, with over EUR 13 billion worth of genuine transactions lost due to false positives for fraud. Similarly, airlines lost over EUR 6.5 billion to fraud last year, the average of 1.5% of the total global airline revenues. The fashion sector contributed the most to the total loss against fraudsters (28%), followed by home and living (22%), and electronics (19%).

Fraugster is a Germany-based payments intelligence company that helps ecommerce merchants and businesses to minimise fraud by deploying accurate AI-centred fraud prevention solutions. 

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Keywords: report, chargebacks, ecommerce, BNPL, fraud management, fraud detection, digital identity, identity fraud, account takeover, friendly fraud, credit card fraud, PSP
Categories: Fraud & Financial Crime
Companies: Fraugster
Countries: Europe
This article is part of category

Fraud & Financial Crime


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