A new study from Juniper Research has forecasted that merchant losses from online payment fraud will exceed $362 billion globally between 2023 to 2028, with losses of $91 billion alone in 2028.
A rise in eCommerce transactions in emerging markets is driving this growth. Merchants there are facing new threats, such as increased use of AI for attacks.
Online payment fraud is where cybercriminals conduct false or illegal transactions online, using a number of different fraud strategies, such as phishing or account takeover.
The research found that the leading players scored well based on the breadth of their anti-fraud orchestration capabilities, as well as their use of AI for analysing trends in fraudster behaviour. In order to stay ahead of the competition, vendors must utilise data collected throughout the eCommerce process to further develop their fraud detection and prevention solutions through training and advancing AI models.
Research author Cara Malone said “Fraud detection and prevention providers must educate their clients in the importance of data sharing, in order for the highest accuracy within their solutions. This is increasingly important with the growing use of AI, as it utilises a variety of data to examine patterns within fraud, which is extremely advantageous in a space where fraudsters usually attack at scale, rather than attacking a specific customer.”