Over the next five years, merchants will cumulatively lose more than $343 billion to online payment fraud and account takeover attacks will be one of the main drivers of the losses, according to a new report.
The report—Online Payment Fraud: Emerging Threats, Segment Analysis & Market Forecasts 2022-2027 ($)—said physical goods sellers will be most vulnerable. Attacks on e-commerce merchants that sell physical goods will account for nearly half (49 percent) of all online fraud losses by 2027—a 110 percent increase from the current level of fraud losses for this type of merchant.
Nick Maynard, the report’s author, says the variety and sophistication of fraud attacks and the number of different ways online merchants can transact dictates a flexible and layered solution to defend against digital fraud attacks.
“Fundamentally, no two online transactions are the same, so the way transactions are secured cannot follow a one-size-fits-all solution,” Maynard notes in the report. “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.”