Report: Online Payment Fraud Losses to Exceed $25 Billion

Report: Online Payment Fraud Losses to Exceed $25 Billion

April 2, 2020

New research predicts e-commerce merchants will see losses due to online payment fraud that exceed $25 billion in 2024, up from just of $17 billion in 2020. The information is from Juniper Research and was released in their recent report titled Online Payment Fraud: Emerging Threats, Segment Analysis & Market Forecasts 2020-2024. China will account for 42 percent of all e-commerce payment fraud in 2024, according to the study.

Juniper officials noted that despite the ongoing implementation of SCA (Secure Customer Authentication) in Europe, the popularity of e-commerce and increased card-present security with the introduction of EMV, have made e-commerce payments a major target for fraudsters. The authors also suggested e-commerce merchants outside Europe must adopt similar measures to SCA, including two-factor authentication, or they will suffer from increasing levels of sophisticated fraud. 

Education Will Be Critical For Customers 

Juniper researchers also said e-commerce merchants must take on a more educational role for their users to inform them about cybersecurity practices, common fraud methods and changes to the checkout process to improve fraud mitigation. 

“The explosion of e-commerce means that fraudsters have evolved their tactics, and so merchants must also evolve,” said research co-author Nick Maynard. “e-commerce merchants must educate their users in anti-fraud best practice, as the human element is consistently the most vulnerable to exploitation in the online payments ecosystem.”

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Joan Goodchild

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