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: Why a PIM solution is essential for your ecommerce strategy...
24.11.2022   #e-commerce #customer relationship management

Why a PIM solution is essential for your ecommerce strategy

Salsify's webinar on effective product information management (PIM) on Nov. 30 at 4 p.m.

Effective product information management (PIM) is the cornerstone of your brand’s ecommerce strategy. Accurate and relevant product data helps brand manufacturers win on the digital shelf by convincing shoppers on all channels and touchpoints ...

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 ...

Thumbnail-Photo: Christmas World
23.01.2023   #event #marketing

Christmas World

03.02.2023 - 07.02.2023 | Frankfurt, Germany

The trade fair for the busiest time of the yearChristmas World focuses on the strongest-selling and most emotional time of the year and exploits the success factor of experience at the point of sale like no other consumer-goods trade fair. This ...

Thumbnail-Photo: Macy’s announces sustainable initiatives to drive a more circular...
30.09.2022   #sustainability #Tech in Retail

Macy’s announces sustainable initiatives to drive a more circular future

Through its social purpose platform, Mission Every One, Macy’s, Inc. is committed to creating a brighter future for all

Macy’s, Inc. has provided an update detailing its achievements towards its long-term sustainability goals – including initiatives that promote circularity throughout its value chain. ...

Thumbnail-Photo: Launch of Walmart Land and Walmart’s Universe of Play...
14.10.2022   #omnichannel #food retail

Launch of Walmart Land and Walmart’s Universe of Play

Roblox community members can check out the Walmart ‘isles’ to collect verch, catch top music artists and unlock exclusive interactive content

Recently, Walmart announced the launch of two new immersive experiences in the metaverse mega-platform, Roblox. Called Walmart Land and Walmart’s Universe of Play, the spaces offer unique interactive content and entertainment for customers, ...

Thumbnail-Photo: ISE – Integrated Systems Europe
23.01.2023   #Tech in Retail #event

ISE – Integrated Systems Europe

31.01.2023 - 03.02.2023 | Barcelona, Spain

ISE 2023 will showcase the world’s leading technology innovators and solution providers which include industry-leading brands such as Absen, Blackmagic Design, Barco, Christie, Crestron, Google, KNX, Lang, LG, Logitech, Panasonic, Samsung, ...

Thumbnail-Photo: Insights on the Buy now, pay later market in Latin America to 2028...
07.11.2022   #online trading #e-commerce

Insights on the 'Buy now, pay later' market in Latin America to 2028

The BNPL payment industry in Latin America has recorded strong growth over the last four quarters, supported by increased e-commerce penetration

The "Latin America Buy Now Pay Later Business and Investment Opportunities - 75+ KPIs on Buy Now Pay Later Trends by End-Use Sectors, Operational KPIs, Market Share, Retail Product Dynamics, and Consumer Demographics - Q3 2022 Update" ...

Thumbnail-Photo: Kraft Heinz optimizes product content for 3000 SKUs to win on the...
07.12.2022   #e-commerce #digitization

Kraft Heinz optimizes product content for 3000 SKUs to win on the digital shelf

Salsify assists Kraft Heinz in delivering a consistent brand experience across every digital and physical retail channel

Salsify, the Commerce Experience Management (CommerceXM) platform empowering brand manufacturers, distributors, and retailers to win on the digital shelf, announced it is helping The Kraft Heinz Company update retailer product content in just ...

Thumbnail-Photo: Aldi Bus: Retailer celebrates Cheapest Supermarket of the Year win...
24.01.2023   #customer satisfaction #customer relationship management

Aldi Bus: Retailer celebrates Cheapest Supermarket of the Year win

Aldi Bus takes customers from competitor stores to shop at the cheapest supermaret

Surprised supermarket shoppers were today given free bus rides to the cheapest store in town, after Aldi was crowned the UK’s Cheapest Supermarket for the second year running.  The cheeky stunt by Aldi featured bus stops placed outside ...

Thumbnail-Photo: MWC Barcelona
23.01.2023   #Tech in Retail #mobile shopping

MWC Barcelona

27.02.2023 - 02.03.2023 | Barcelona, Spain

Where technology, community and commerce convergeMWC Barcelona is the largest and most influential event for the connectivity ecosystem. Whether a global mobile operator, device manufacturer, technology provider, vendor, content owner, or simply ...

Supplier

salsify
salsify
7 rue de Madrid
75008 Paris