Online Payment Fraud Escalates

The cumulative merchant losses to online payment fraud globally between 2023 and 2027 will exceed $343 billion. As a comparison, this equates to over 350 per cent of Apple’s reported net income in the 2021 fiscal year; showing the massive extent of these losses, says a study from Juniper Research. Online payment fraud includes losses across the sales of digital goods, physical goods, money transfer transactions, and banking. Fraudster attacks can include phishing, business eMail compromise, and socially engineered fraud. One key driver of online payment fraud losses is fraudster innovation in areas such as account takeover fraud, where a user’s account is hijacked. The research finds that to combat rising fraud, fraud prevention vendors must orchestrate the right mix of verification tools, at the most effective point in the customer journey, to best protect users, but that this will require significant capabilities to achieve.