eCommerce losses to online payment fraud to exceed $48 billion

Issue 6 2022 Editor's Choice, News & Events, Security Services & Risk Management, Financial (Industry)

A new study from Juniper Research has found that the total cost of eCommerce fraud to merchants will exceed $48 billion globally in 2023, up from just over $41 billion in 2022. It predicted that this growth will be accelerated by the increasing use of alternative payment methods, such as digital wallets and BNPL (buy-now-pay-later), which are creating new fraud risks.

The report recommended that fraud prevention vendors focus on building platforms providing AI-powered risk-based scoring, which can be payment-method agnostic, to best suit changing market conditions.

Online payment fraud includes losses across the sales of digital goods, physical goods, money transfer transactions and banking, as well as purchases like airline ticketing. Fraudster attacks can include phishing, business email compromises and socially engineered fraud.

The research identified North America as having the largest fraudulent transaction value of any regional market, accounting for over 42% of global fraud by value in 2023, despite representing less than 7% of banked individuals globally. The research cited the vast volume of data breaches and the broad availability of stolen credit card information as the key risk factors in this market.

Research author, Nick Maynard, explained: “To combat this fraud, eCommerce merchants must implement simple steps such as address verification, combined with risk-based scoring on transactions, which will allow merchants to best mitigate the massive fraud threats present.”

Additionally, the research found that the potential for fraud with BNPL is a major risk going forward. Given the delayed nature of BNPL payments, fraudsters can make several illegitimate payments using stolen card details before the fraudulent activity is identified, creating significant risk. In turn, the research recommended that BNPL vendors conduct robust identity verification at the point of onboarding to mitigate these risks.

Download the free white paper: https://www.juniperresearch.com/whitepapers/fighting-online-payment-fraud-in-2022-beyond




Share this article:
Share via emailShare via LinkedInPrint this page



Further reading:

Highest increase in global cyberattacks in two years
Information Security News & Events
Check Point Global Research released new data on Q2 2024 cyber-attack trends, noting a 30% global increase in Q2 2024, with Africa experiencing the highest average weekly per organisation.

Read more...
CCTV control room operator job description
Leaderware Editor's Choice Surveillance Training & Education
Control room operators are still critical components of security operations and will remain so for the foreseeable future, despite the advances of AI, which serves as a vital enhancement to the human operator.

Read more...
SAFPS issues SAPS impersonation scam warning
News & Events Security Services & Risk Management
The Southern African Fraud Prevention Service (SAFPS) is warning the public against a scam in which scammers pose as members of the South African Police Service (SAPS) and trick and intimidate individuals into handing over personal and financial information.

Read more...
Amendments to the Private Security Industry Regulations
Technews Publishing Agriculture (Industry) News & Events Associations
SANSEA, SASA, National Security Forum, CEO, TAPSOSA, and LASA oppose recently published Amendments to the Private Security Industry Regulations regarding firearms.

Read more...
A passport to offline backups
SMART Security Solutions Technews Publishing Editor's Choice Infrastructure Smart Home Automation
SMART Security Solutions tested a 6 TB WD My Passport and found it is much more than simply another portable hard drive when considering the free security software the company includes with the device.

Read more...
Navigating the complexities of privileged access management
Editor's Choice Access Control & Identity Management
Privileged Access Management and Identity Access Management are critical pillars of modern cybersecurity, designed to secure access to sensitive resources, enforce principles like least privilege, and implement just-in-time access controls.

Read more...
Rewriting the rules of reputation
Technews Publishing Editor's Choice Security Services & Risk Management
Public Relations is more crucial than ever in the generative AI and LLMs age. AI-driven search engines no longer just scan social media or reviews, they prioritise authoritative, editorial content.

Read more...
How can South African organisations fast-track their AI initiatives?
AI & Data Analytics Security Services & Risk Management
While the AI market in South Africa is anticipated to grow by nearly 30% annually over the next five years, tapping into the promise and potential of AI is not easy.

Read more...
Efficient, future-proof estate security and management
Technews Publishing ElementC Solutions Duxbury Networking Fang Fences & Guards Secutel Technologies OneSpace Technologies DeepAlert SMART Security Solutions Editor's Choice Information Security Security Services & Risk Management Residential Estate (Industry) AI & Data Analytics IoT & Automation
In February this year, SMART Security Solutions travelled to Cape Town to experience the unbelievable experience of a city where potholes are fixed, and traffic lights work; and to host the Cape Town SMART Estate Security Conference 2025.

Read more...
Stallion repositions itself as a services provider
News & Events Security Services & Risk Management
Stallion has rebranded as Stallion Integrated Solutions to reflect its expanded capabilities beyond traditional security services to delivering integrated solutions that enhance safety, asset management, and operational efficiency.

Read more...