Fraugster reveals EUR 80 bln were lost in 2021 due to online fraud

Thursday 21 July 2022 11:10 CET | News

Fraugster, a Germany-based payment intelligence company which offers compliance, chargeback protection, risk management solutions, and credit scoring via one AI platform and one integration, has published its first Payment Intelligence Report 2022.
EUR 80 bln lost in 2021 due to online fraud

The Payments Intelligence Report 2022 provides insight into compliance, fraud risk, and revenue uplift trends in the market. The information was gathered from 60 billion data points and 80 million individual transactions that were analysed by the Fraugster team in 2021.

Findings highlight the latest fraud tactics being deployed against Payment Service Providers (PSPs), Buy Now, Pay Later (BNPL) suppliers, and merchants in travel, physical, and digital goods, challenges, and opportunities for BNPL players, chargeback trends, popular fraud types, PSD2 impacts, and future trends for 2022 and beyond.

Research finding

Analysing the fraud attack findings, the report shows a 109% increase in identity fraud, a 70% rise in gift card fraud, and 52% increase in Account Takeover (ATO) attacks.

Furthermore, the top sanctioned countries are Russia, Iran, Syria, and North Korea, but the total anti-money laundering fines in 2021 amounted to EUR 2.5 billion, with over 80 institutions being fined.

Chargebacks remain a problem, with a 46% of the total being filed within a span of just 60 days. Bad debts as a percentage of total outstanding debt for credit cards stood only at 5.30% compared to an estimated 9.55% for BNPL providers.

When it comes to loses, airlines lost over EUR 6.5 billion to fraud in 2021, which is equivalent to the global average cost of 24,000 flight tickets with fraud losses amounting to 1.5% of total global airline revenue.

Total direct fraud losses for digital goods (consisting of gaming, gambling, and gift cards) amounted to EUR 3.58 billion in 2021, with over EUR 13.72 billion worth of genuine transactions lost due to false positives.

To find more about Fraugster, check their company profile.

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Keywords: online fraud, report, payments , compliance, chargebacks
Categories: Fraud & Financial Crime
Companies: Fraugster
Countries: World
This article is part of category

Fraud & Financial Crime


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