The value of losses due to ecommerce fraud to exceed USD 20 bln in 2021

Monday 26 April 2021 12:37 CET | News

A new study from Juniper Research has found that the value of losses due to ecommerce fraud will rise in 2021, from USD 17.5 billion in 2020 to over USD 20 billion by 2021.

According to the press release, the research found that fraudsters have targeted consumers as they have increased their ecommerce use, exposing insecure fraud mitigation processes from merchants who are unfamiliar and unprepared for the continuing fraud challenges in this market. Therefore, the research identified that merchants need to do more to implement fraud prevention strategies across all of their ecommerce channels, or they will continue to experience large losses. The use of AI will enable behavioural biometrics in this area, which will increase security across all potential fraud channels.

Furthermore, the new research, Online Payment Fraud: Emerging Threats, Segment Analysis & Market Forecasts 2021-2025, found that while merchants will be keen to reduce fraud rates from their current levels, they will be hesitant to introduce extra friction into the checkout process. The report identified that clear messaging around security checks and automated behavioural analytics leveraging AI are key capabilities in preserving the user experience.

The research also found that China will be the largest single ecommerce fraud market in the world, accounting for over 40% of ecommerce fraud losses globally in 2025, at over USD 12 billion. Besides, the study identified a massive ecommerce market and a relative lack of fraud detection and prevention platform deployment as the key drivers behind this. The research recommends that merchants operating in China should invest in fraud detection and prevention now, or they will increasingly face damage to their already slim operating margins.

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Keywords: Juniper Research, research, report, online fraud, fraud detection, ecommerce
Categories: Securing Transactions | Digital Identity, Security & Online Fraud
Countries: World
This article is part of category

Securing Transactions