February 21, 2024

A new study predicts that merchant losses to online payment fraud are growing dramatically and will more than double in the next five years, from $38 billion in 2023 to $91 billion in 2028.

Juniper Research noted that this growth was driven by growth in e-commerce transactions in emerging markets, where merchants face new threats, such as the increased use of artificial intelligence in attacks. That said, the convenience of online payments is driving growth, but it has also created an ever-increasing and changing threat landscape.

The top five providers in 2023 are LexisNexis Risk Solutions, Experian, ACI Worldwide, Visa and FICO, in that order.

The study found that leading organizations scored high on the breadth of fraud coordination capabilities and the use of artificial intelligence to analyze trends in fraudster behavior.

As the Juniper Blog recently noted, “Disruption, like any other industry, has the potential to be a force for good; it opens up opportunity through innovation. Payments, however, involve complex Opportunities were created for those who did not, but must now be considered in terms of fraud. Identity networks are also a driving force, and if used correctly, can build trust but also increase this exciting opportunity for fraud.”

To stay ahead of the competition, vendors must further develop fraud detection and prevention solutions by training and improving artificial intelligence models by leveraging data collected throughout the e-commerce process, the report said. Cara Malone, author of the report, said: “Fraud detection and prevention providers must educate their customers on the importance of data sharing in order to achieve the highest accuracy in their solutions.

“This is becoming increasingly important as artificial intelligence is used more and more, as it leverages a variety of data to detect patterns in fraud, which can be very beneficial in an area where fraudsters typically attack on a large scale rather than targeting specific customers. .”

The title of the full report is Online Payment Fraud: Market Forecast, Emerging Threats and Segment Analysis 2023-2028which costs $4,332 (€4,373, £3,750), but offers a free download of the white paper titled “Fighting Online Payments Fraud” can be found here.

This white paper examines the main challenges in the field of online payment fraud, including the current economic crisis in many developed regions, the growing number of SMEs and their need for robust fraud prevention systems, and the lack of space for data sharing in online payment fraud.