Juniper Research: eCommerce Losses to Online Payment Fraud to Exceed $48 Billion Globally in 2023, as Fraud Incursions Evolve

16% Growth in eCommerce Fraud Losses in Just 12 Months

BASINGSTOKE, England--(BUSINESS WIRE)--A new Juniper Research study found that the total cost of eCommerce fraud to merchants will exceed $48 billion globally in 2023, from just over $41 billion in 2022. It predicted that this growth will be accelerated by increasing use of alternative payment methods, such as digital wallets and BNPL (Buy-Now-Pay-Later), which are creating new fraud risks.

The report recommended that fraud prevention vendors focus on building platforms providing AI‑powered risk-based scoring, which can be payment method agnostic, to best suit changing market conditions.

Online payment fraud includes losses across 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 compromises and socially engineered fraud.

To find out more, see the new report: Online Payment Fraud: Market Forecasts, Emerging Threats & Segment Analysis 2022-2027
Download the free whitepaper: Fighting Online Payment Fraud in 2022 & Beyond

North America Tops League Table for Fraud

The research identified North America as having the largest fraudulent transaction value of any regional market, accounting for over 42% of global fraud by value in 2023, despite representing less than 7% of banked individuals globally. The research cited the vast volume of data breaches and the broad availability of stolen credit card information as key risk factors in this market.

Research author Nick Maynard explained: “To combat this fraud, eCommerce merchants must implement simple steps such as address verification, combined with risk-based scoring on transactions, which will allow merchants to best mitigate the massive fraud threats present.”

BNPL Fraud – A Major Risk

Additionally, the research found that the potential of fraud with BNPL is a major risk going forward. Given the delayed nature of BNPL payments, fraudsters can make several illegitimate payments using stolen card details before the fraudulent activity is identified, creating significant risk. In turn, the research recommended that BNPL vendors conduct robust identity verification at the point of onboarding to mitigate these risks.

Online Payment Fraud market research: https://www.juniperresearch.com/researchstore/fintech-payments/online-payment-fraud-research-report

Download the free whitepaper: https://www.juniperresearch.com/whitepapers/fighting-online-payment-fraud-in-2022-beyond

Juniper Research provides research and analytical services to the global hi-tech communications sector; providing consultancy, analyst reports, and industry commentary.

Contacts
Sam Smith, Press Relations
T: +44(0)1256 830002
E: sam.smith@juniperresearch.com

Like what you read? Head to the TechDogs homepage to find the latest tech content infused with drama and entertainment. We've got Articles, White Papers, Case Studies, Reports, Videos and Events - the complete lot to help you Know Your World of Technology.

First published on Wed, Oct 12, 2022

Enjoyed what you've read so far? Great news - there's more to explore!

Stay up to date with the latest news, a vast collection of tech articles including introductory guides, product reviews, trends and more, thought-provoking interviews, hottest AI blogs and entertaining tech memes.

Plus, get access to branded insights such as informative white papers, intriguing case studies, in-depth reports, enlightening videos and exciting events and webinars from industry-leading global brands.

Dive into TechDogs' treasure trove today and Know Your World of technology!

Disclaimer - Reference to any specific product, software or entity does not constitute an endorsement or recommendation by TechDogs nor should any data or content published be relied upon. The views expressed by TechDogs' members and guests are their own and their appearance on our site does not imply an endorsement of them or any entity they represent. Views and opinions expressed by TechDogs' Authors are those of the Authors and do not necessarily reflect the view of TechDogs or any of its officials. While we aim to provide valuable and helpful information, some content on TechDogs' site may not have been thoroughly reviewed for every detail or aspect. We encourage users to verify any information independently where necessary.

Tags:

Juniper Research Ecommerce Digital Wallets Digital Goods

Join The Discussion

- Promoted By TechDogs -

Market Research