Online payment fraud losses to exceed USD 343 billion by 2027 – Juniper Research

Monday 11 July 2022 14:48 CET | News

Juniper Research has released a study revealing cumulative merchant losses to online payment fraud globally between 2023 and 2027 to exceed USD 343 billion.

Key drivers for this prognosis are cited to be fraudster innovation in areas such as account takeover fraud, where a user’s account is hijacked. This is despite the wide employment of identity verification measures.

The research found that in order to combat rising fraud, fraud prevention vendors must orchestrate the right mix of verification tools, at the most effective point in the customer journey, to best protect users, but that this will require significant capabilities to achieve.

As explained in the study, no two online transactions are the same, so the way transactions are secured cannot follow a one-size-fits-all solution. Payment fraud detection and prevention vendors must build a multitude of verification capabilities, and intelligently orchestrate different solutions depending on circumstances, in order to correctly protect both merchants and users.

Further insights on online payment fraud losses globally

The research identified physical goods purchases as the largest single source of losses; accounting for 49% of cumulative online payment fraud losses globally over the next 5 years, growing by 110%. Lax address verification processes in developing markets are a major fraud risk, with fraudsters targeting physical goods specifically, due to their resell potential. 

As such, the study recommends merchants adopt strong anti-fraud measures, including multiple sources of address verification and multi-factor authentication to reduce fraudulent incidents for physical goods merchants.

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Keywords: fraud management, ecommerce, study, fraud prevention
Categories: Fraud & Financial Crime
Companies: Juniper Research
Countries: World
This article is part of category

Fraud & Financial Crime

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