Online Payment Fraud to Generate More Than $340 Billion in Losses Over the Next Few Years
Virtually half of these losses will come from physical goods, as fraudsters find great resale potential in them.
Phishing, BEC email attacks and social engineering are enabling cybercriminals’ intrusion into online payment.
Juniper Research believes that, between 2023 and 2027, cumulative commercial losses from online payment fraud will exceed $343 billion globally. This includes sales of digital and physical goods, money transfers and banking transactions, as well as other areas such as transportation ticket purchases, for example.
Practically half of these losses will come from physical goods, as fraudsters find great resale potential in them.
These criminals are going deeper into account hijacking despite the widespread use of identity verification measures. Juniper Research sees a need to strengthen anti-fraud measures with multiple sources for address verification or multi-factor authentication. In particular, it advises identifying the most effective point in the customer journey and combining verification tools.
“No two online transactions are the same,” says researcher Nick Maynard, so there is also no “one-size-fits-all solution” for securing transactions.
“Payment fraud detection and prevention providers must create a multitude of verification capabilities and intelligently orchestrate different solutions depending on the circumstances,” Maynard explains, “to properly protect both merchants and users.”
