More Fraud Prevention Strategies Needed For eCommerce

The value of losses due to eCommerce fraud will rise this year, from $17.5 billion in 2020 to over $20 billion by 2021; a growth of 18 per cent over a single year, says a report from Juniper Research. Fraudsters have targeted consumers as they have increased their eCommerce use, exposing insecure fraud mitigation processes from merchants who are unfamiliar and unprepared with the continuing fraud challenges in this market. The report says merchants need to do more to implement fraud prevention strategies across all of their eCommerce channels or they will continue to experience large losses. The use of artificial intelligence (AI) can enable behavioural biometrics in this area, which will increase security across all potential fraud channels. However, although merchants will be keen to reduce fraud rates from their current levels, they will be hesitant to introduce extra friction into the checkout process. “While the need for security is greater than ever, the competitive eCommerce environment means merchants will need to ensure that extra security checks are justified to the user or they risk higher cart abandonment rates,” says Susan Morrow, research co-author. The research also says that China will be the largest single eCommerce fraud market in the world; accounting for over 40 per cent of eCommerce fraud losses globally in 2025, at over $12 billion. The research identified a massive eCommerce market and a relative lack of fraud detection and prevention platform deployment as the key drivers behind this.