The 6th edition of the Fraud Prevention in Ecommerce Report provides a thorough review of the current global fraud ecosystem and how the latest technologies can help prevent and deter fraudulent activities.
With ecommerce on the rise and 85% of consumers relying on online shopping, fraudsters have perfected their ways to prey on less tech-savvy users, causing merchants to lose USD 48 billion to online payment fraud. Moreover, 43% of online users have already fallen victim to online fraud, showing the amplitude of the phenomenon.
The main types of fraud merchants must combat in 2025 and beyond include promo abuse and refund fraud, first-party misuse, phishing, card testing, account takeover, chargebacks, identity theft, card-not-present fraud, and fraud rings.
Report highlights
The latest edition of the Fraud Prevention in Ecommerce Report consists of four comprehensive chapters, revolving around the most prevalent types of fraud experienced by merchants over the past 12 months, up-to-date fraud prevention strategies and solutions, and an extensive infographic based on in-house research, depicting fraud prevention solution providers and the areas in which they excel.
What to look out for in ecommerce fraud in 2024
Addressing the current fraud ecosystem with effective solutions is imperative, and the first step in doing so is educating the audience on the dangers of fraud. Although online scams have existed for at least two decades, fraudsters are continuously perfecting their tactics, often lurking on social media platforms to find their next target. The Merchant Risk Council (MRC) discusses the prevalence of scams and why they still work, providing an overview of their evolution and outlining key fraud prevention tactics to be deployed to stay ahead of scammers. Worldline completes the chapter by sharing its expertise on innovative device intelligence to enhance scam protection.
Industry experts such as CMSPI, Juniper Research, and ACI Worldwide address emerging technologies in fraud, with in-depth research on the use of artificial intelligence (AI) and machine learning (ML). Their contributions aim to pave the way to a better-prepared future of fraud prevention. ID verification and biometrics are other hot topics of 2024, showing that merchants must impose stricter know your customer (KYC) procedures to keep fraudsters from infiltrating their online platforms. However, using intelligent decisioning is pivotal in deploying a cohesive fraud prevention strategy that not only protects businesses but provides a safe online shopping environment for customers, without adding extra layers of friction.
Fraud on the rise in 2024 and beyond – what merchants need to know
With promo abuse and refund fraud emerging as major concerns for merchants in the past months, understating customer profiles is crucial for adjusting return and refund policies without alienating legitimate shoppers. Fraud expert Brian Davis offers valuable guidance for merchants looking to update their policies to stay ahead of fraudsters and prevent fraud rings from sweeping off their profits.
Additional valuable insights on card-not-present fraud and merchant fraud are provided by Eneba and Riskified, rounding out our expert contributions that aim to raise awareness about the most prevalent types of fraud in 2024.
Who’s who in fraud prevention – infographic
As part of our ongoing research at The Paypers, in this report, we feature the updated Who is who in fraud prevention infographic, which provides a global overview of prominent fraud prevention players and their core solutions. From fraud/risk management and decisioning platforms to customer authentication, identity verification, behavioural biometrics, chargebacks management, know your business (KYB), KYC, and more, these players offer solutions that aim to help merchants, marketplaces, and others easily identify key fraud prevention partners, thus fostering safer online transactions and protecting consumers.
Acknowledgement
A special thank you goes to our supporting partners, the Merchant Risk Council (MRC) and Marketplace Risk, for endorsing the Fraud Prevention in Ecommerce Report 2024-2025, as well as to our key media partner, Merchant Payments Ecosystem (MPE).
Interested in learning more? Download your free copy of the Fraud Prevention in Ecommerce Report 2024-2025 and become part of the change you want to see in the fraud prevention realm. Challenge your business to deploy all its efforts in deterring fraud – and stay ahead of scammers and abusers!
Enjoy your reading!