Global online payment fraud losses are expected to exceed $343bn over the next five years, according to Juniper Research.
To put this into perspective, this equates to more than 350% of Apple’s reported net income in the 2021 fiscal year.
The report, ‘Online Payment Fraud: Emerging Threats, Segment Analysis & Market Forecasts 2022-2027’ claims the high fraud costs will be driven by fraudster innovation, such as account takeover fraud, where a user’s account is hijacked.
It found that fraud prevention vendors must orchestrate the right mix of verification tools if they want to combat the rise in fraud.
The research claims that physical goods purchases were the largest single source of losses, accounting for 49% of cumulative online payment fraud losses globally over the next five years.
Juniper Research claims that lax address verification processes in developing markets are a major fraud risk, with fraudsters targeting physical goods.
Report author Nick Maynard said, “Fundamentally, no two online transactions are the same, so the way transactions are secured cannot follow a one-size-fits-all solution.
“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.”
Online payment fraud includes losses across the sales of digital goods, physical goods, money transfer transactions and banking, as well as airline ticketing. Fraudster attacks can include phishing, business email compromise and socially engineered fraud.
Another report from Juniper recently found that the global value of biometrically authenticated remote mobile payments is expected to reach $1.2trn by 2027.
Copyright © 2022 FinTech Global