Online payment fraud is costing business owners billions
Merchants are facing growing tide of online fraud attacks
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Businesses are set to suffer over $206 billion in losses fromidentity fraudin the period between 2021 and 2025, according to new figures.
A study from Juniper Research has highlighted growing issues for merchants, especially since the arrival of the global coronavirus pandemic. To put the huge figure into perspective; Juniper’s number is equivalent to nearly 10 timesAmazon’s net income for the 2020 financial year.
There has been a surge insynthentic identityandaccount takeoverfraud, which can compromise entire accounts and thepayment dataof customers. However, the research indicates that merchantsdohave the potential for fighting back, by enlisting the help of machine-learning-basedfraud preventionplatforms to combat the wave of increasingly sophisticated criminal attacks.
Central to the problem is the sale of physical goods that have been purchased remotely throughe-commerce outlets, with thefalloutof resulting online payment fraud accounting for over 47% of fraud losses so far this year.
Payment fraud
However, business ownersarefighting back and attempting to counter the growing threat of identity fraud by improving theirfraud detectionand prevention systems. Spending on boosting these is expected to be over $11.8 billion globally by 2025, up from $9.3 billion in 2021.
The Juniper Research findings show that businesses will increasingly need the help of fraud protection and prevention vendors who can help them tackle the growing range ofonline paymentoptions available throughe-commerce channels.
Business owners are also having to reshape their online shopping outlets to work in tandem with developing payment trends, such asopen banking. Along with creating more robust e-commerce payment solutions, business are also being advised to invest in additional measures, includingidentity theft softwareandpassword managers.
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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.”
Rob Clymo has been a tech journalist for more years than he can actually remember, having started out in the wacky world of print magazines before discovering the power of the internet. Since he’s been all-digital he has run the Innovation channel during a few years at Microsoft as well as turning out regular news, reviews, features and other content for the likes of TechRadar, TechRadar Pro, Tom’s Guide, Fit&Well, Gizmodo, Shortlist, Automotive Interiors World, Automotive Testing Technology International, Future of Transportation and Electric & Hybrid Vehicle Technology International. In the rare moments he’s not working he’s usually out and about on one of numerous e-bikes in his collection.
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