News • 22.07.2022

Cybercrime is becoming a growing problem for the industry

Online payment fraud losses to exceed $343 billion globally over the next 5 years

A person using a laptop in the dark while wearing fingerless gloves....
Source: Towfiqu Barbhuiya / Unsplash

A new study from Juniper Research has found that 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% of Apple’s reported net income in the 2021 fiscal year; showing the massive extent of these losses.

Online payment fraud includes losses across the sales of digital goods, physical goods, money transfer transactions and banking, as well as purchases like airline ticketing. Fraudster attacks can include phishing, business email compromise and socially engineered fraud.

  • Key Drivers: Online payment fraud losses are partly being driven by fraudster innovation in areas such as account takeover fraud, where a user’s account is hijacked. This is despite the wide employment of identity verification measures.
  • Free whitepaper: Fighting Online Payment Fraud in 2022 & Beyond

Innovation needed in fraud prevention strategies

The research found that in order 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.

Report author Nick Maynard explained: “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.”

Physical goods largest fraud area

The research identified physical goods purchases as the largest single source of losses; accounting for 49% of cumulative online payment fraud losses globally over the next 5 years, growing by 110%. Lax address verification processes in developing markets are a major fraud risk, with fraudsters targeting physical goods specifically, due to their resell potential. As such, it recommends that merchants adopt strong anti-fraud measures, including multiple sources of address verification and multi-factor authentication to reduce fraudulent incidents for physical goods merchants.

Source: Juniper Research

related articles:

popular articles:

Thumbnail-Photo: #DWMF Europe for top-level digital marketing insights...
09.08.2022   #digital marketing #event

#DWMF Europe for top-level digital marketing insights

DMWF Europe at the RAI in Amsterdam on 21-22 November

DMWF Europe returns to the RAI, Amsterdam on 21-22 November, for a must-see hybrid conference and exhibition bringing together the brightest minds in digital marketing. It’s three days of top-level strategic content, digital marketing ...

Thumbnail-Photo: Convenience Experience Report: Demand for short lines, mobile ordering,...
05.07.2022   #food retail #customer experience

Convenience Experience Report: Demand for short lines, mobile ordering, and drive-thru

Americans put convenience stores on par with fast food restaurants

Bluedot introduced the first Convenience Experience Report, a benchmark study that explores consumer sentiment and the customer experience at gas stations and convenience stores (c-stores).The research was based on a survey of 1,570 American ...

Thumbnail-Photo: Survey: Most consumers say they buy based on experience vs. price...
08.08.2022   #customer satisfaction #customer analysis

Survey: Most consumers say they buy based on experience vs. price

99% also said they regularly shop online while 97% have purchased through social media

Bazaarvoice has released its latest research, based on a survey of more than 10,000 global shoppers. The report reiterates the importance of engaging shopping experiences and proves that ‘online shopper’ may in the future become a ...

Thumbnail-Photo: Top 5 retail trends for 2022 providing new opportunities...
27.06.2022   #online trading #e-commerce

Top 5 retail trends for 2022 providing new opportunities

The five most important trends in retail that entrepreneurs can use to seize their opportunities

I have always believed in getting into the mind space of our customers. So lately, I've been interviewing a lot of retail customers and have learned a great deal about the challenges retailers face. But among those challenges, there are also ...

Thumbnail-Photo: The end of the cookie era?
19.09.2022   #online trading #e-commerce

The end of the cookie era?

More and more companies are abandoning the collection of cookies. The reasons are as varied as the possible alternatives

They have been at the heart of online marketing for years and are one of the most important sources of information for many companies when it comes to customers' habits and preferences – cookies. But the era of cookies is coming to an end. ...

Thumbnail-Photo: Sustainable logistics: Dont wait, act now!
23.06.2022   #retail #sustainability

Sustainable logistics: Don't wait, act now!

Why an environmentally conscious logistics strategy can pay off

On 22.06.2022 it was that time again: Webtalk time served up by iXtenso and EuroShop. We filled our retail-salsa cooking pot with all kinds of ingredients to create the right flavor for your environmentally conscious shipping...

Thumbnail-Photo: In-store marketing: The salt in the soup of sales promotion...
01.07.2022   #e-commerce #sustainability

In-store marketing: The salt in the soup of sales promotion

How to positively influence the shopping experience of your clientele

Soft music in the background, delicious scent, pleasant lighting – Sounds like dinner at your favorite restaurant? Almost. Because atmospheric design elements are also important ingredients for the perfect in-store shopping experience in ...

Thumbnail-Photo: IKEA and Infarm start urban herbs farming project...
20.06.2022   #brick and mortar retail #sustainability

IKEA and Infarm start urban herbs farming project

Pilot project for joint, sustainable cultivation of herbs in furniture stores

Demand is growing for high-quality food that is produced locally and with as little environmental impact as possible. To meet this, IKEA and Infarm are growing high-quality herbs in Infarm's vertical farms in the customer restaurants in three ...

Thumbnail-Photo: Visual search – Finding products with images...
28.06.2022   #online trading #e-commerce

Visual search – Finding products with images

Not only the result, but also the user experience is crucial

In online retail, a well-developed and easy-to-use product search is essential for customers. For a high level of convenience and optimal results, this now includes visual search. This means that users can search for similar items using images of ...

Thumbnail-Photo: Domo releases annual “Data Never Sleeps” infographic...
05.10.2022   #retail #digitization

Domo releases annual “Data Never Sleeps” infographic

A decade of minute-by-minute data shows 1700% increase in digital engagement on some platforms

Domo has released the 10th edition of its Data Never Sleeps (DNS) infographic, the annual glimpse at how much data is generated on the internet every minute by the ways people interact online. Over the last decade of chronicling the world's data ...

Supplier

SALTO Systems GmbH
SALTO Systems GmbH
Schwelmer Str. 245
42389 Wuppertal
Chili publish NV
Chili publish NV
Neue Schönhauserstraße 3-5
10178 Berlin
Canto GmbH
Canto GmbH
Lietzenburger Str. 46
10789 Berlin
EuroShop
EuroShop
Stockumer Kirchstraße 61
40474 Düsseldorf
iXtenso - retail trends
iXtenso - retail trends
Celsiusstraße 43
53125 Bonn