News • 16.07.2021

Online payment fraud on the rise

Losses expected to exceed $206 billion over the next five years

Hooded person sits in front of three computers in a dark room...
Source: PantherMedia/NomadSoul

A new study from Juniper Research has found that merchant losses to online payment fraud will exceed $206 billion cumulatively for the period between 2021 and 2025. This figure, equivalent to almost 10 times Amazon’s net income in the 2020 financial year, demonstrates why merchants must make combatting fraud, through the use of machine learning-based fraud prevention platforms, an immediate priority.

The research identified that the pandemic has led to a surge in synthetic identity and account takeover fraud, which threaten the security of entire accounts, alongside associated payment data. The research recommends payment fraud detection vendors focus on partnering on data agreements now, to maximise the data available to machine learning algorithms; boosting chances of identifying fraudulent transactions.

Remote physical goods are leading fraud area of concern

The new research, Online Payment Fraud: Emerging Threats, Segment Analysis & Market Forecasts 2021-2025, found that remote physical goods purchases are the leading cause of online payment fraud; accounting for over 47% of fraud losses in 2021. The research urges payment fraud prevention vendors to offer services based on digital identity verification, to boost security and combat the surge in account takeover fraud.

Research co-author Nick Maynard explains: ‘Given the large amounts of online payment transactions globally, it is essential that this transactional data is leveraged to continually detect fraudulent transactions. Payment providers who can use this data to identify new fraud sources and tactics will be those who prove to be the most resilient to this significant market loss.’

Unprecedented Fraud Risks Leading to Increased Detection Spending

The research also found that spending on fraud detection and prevention platform services will exceed $11.8 billion globally in 2025, from $9.3 billion in 2021. Accordingly, the research recommends that fraud detection and prevention vendors focus on building platforms that can cover all the emerging channels of payment traffic, including new areas such as open banking payments, supported by data partnerships, and backed by large-scale machine learning, to achieve the best outcomes.

Source: Juniper Research

related articles:

popular articles:

Thumbnail-Photo: Digital commerce market expected to reach $17.53 trillion by 2030...
21.12.2021   #e-commerce #payment systems

Digital commerce market expected to reach $17.53 trillion by 2030

Growing penetration of the Internet drives growth of digital commerce market

According to the report published by Allied Market Research, the global digital commerce market was estimated at $4.21 trillion in 2020 and is anticipated to hit $17.53 trillion by 2030, registering a CAGR of 15.1 percent from 2021 to ...

Thumbnail-Photo: Solace announces cooperation with Edeka
06.12.2021   #data management #data warehouse management

Solace announces cooperation with Edeka

German supermarket chain Edeka uses Solace technology to stream master data across stores and supply chain

Event-driven architecture will enable Edeka to distribute product information across their supply chain and 6,000+ stores in real-time.Solace, provider for powering real-time event-driven enterprises, announced today that the Edeka Group, one of ...

Thumbnail-Photo: 4 ways to make your sales team more productive in 2022...
08.02.2022   #marketing #sales promotion

4 ways to make your sales team more productive in 2022

Tech evaluation and employee feedback among them

A 2018 report stated that more than 50% of salespeople fail to meet their quota. And this figure increased in 2020, as companies had to rethink their strategies due to the COVID-19 pandemic. Additionally, businesses these days have to keep up with ...

Thumbnail-Photo: Startup emma & noah: Company growth with freelancers...
17.01.2022   #online trading #e-commerce

Startup "emma & noah": Company growth with freelancers

What matters when choosing a team

Since founding their startup "emma & noah", Aline Gallois and Fabian Bitta have used the support of freelancers as an additional resource to drive their company forward. With great success: since its founding, they have been able to ...

Thumbnail-Photo: IGD unveils five global retail trends for 2022...
28.01.2022   #retail #coronavirus

IGD unveils five global retail trends for 2022

Global insight provider IGD has published its predictions for the global retail trends that are set to shape the international food and consumer goods industry in 2022

The new report outlines five key trends to help retailers and suppliers navigate the ongoing challenges brought about by COVID-19 and plan for the year ahead.Toby Pickard, Head of Innovation and Future Retail Insight at IGD, said: "2021 was a ...

Thumbnail-Photo: Lowes reimagines DIY learning and shopping experiences...
08.03.2022   #digital marketing #online marketing

Lowe's reimagines DIY learning and shopping experiences

Launch of shoppable learning platform DIY-U with in-store workshops and livestreams

Homeowners continue to invest in home improvement, and with millennials driving homeownership rates, there's a new generation of DIYers seeking a transformation in how-to learning and experiences. To engage this new wave of home improvers, ...

Thumbnail-Photo: Retail turnover in 2021 expected to be up 0.9% in real terms on 2020...
07.01.2022   #online trading #e-commerce

Retail turnover in 2021 expected to be up 0.9% in real terms on 2020

Non-food retail gains, textile retail loses

According to an estimate of the Federal Statistical Office (Destatis), turnover in retail trade in Germany recorded a new record high in 2021.The real (price-adjusted) turnover in retail trade was 0.6% to 1.2% higher and the nominal (not ...

Thumbnail-Photo: White Label World Expo
26.01.2022   #online trading #e-commerce

White Label World Expo

2nd & 3rd March 2022 - ExCeL London

White Label World Expo UK is right around the corner! Join us at the UK’s largest event for professional online sellers to meet cutting edge white label goods suppliers!The show is returning to the ExCeL Centre in London on 2nd & 3rd March ...

Thumbnail-Photo: First speakers of EBE2022 - meet them!
17.02.2022   #trade fair consulting #trade fair special

First speakers of EBE2022 - meet them!

The agenda is almost finished, the first speakers are confirmed

The Ecommerce Berlin Expo 2022 is coming up, and we have some exciting news. The agenda is almost finished, and the first speakers are already confirmed - we're proud to announce them here! Let’s have a closer look at them.About E-commerce ...

Thumbnail-Photo: World Class Retail Store Transformation 2022 conference...
11.01.2022   #retail #digitization

World Class Retail Store Transformation 2022 conference

First-mover retail- and customer-focused companies across Europe to come together in Frankfurt on 2022, August 25-26

Leading retail- and customer-focused companies in Europe will gather at this year’s World Class Retail Store Transformation 2022 conference, to be held on 2022, August 25-26 in Frankfurt, Germany. The 2022 edition of the World Class Business ...

Supplier

iXtenso - retail trends
iXtenso - retail trends
Celsiusstraße 43
53125 Bonn
Citizen Systems Europe GmbH
Citizen Systems Europe GmbH
Otto-Hirsch-Brücken 17
70329 Stuttgart
Canto GmbH
Canto GmbH
Lietzenburger Str. 46
10789 Berlin