Online payment fraud losses to exceed US$343 bln globally over the next 5 years - Juniper Research

KUALA LUMPUR, July 12 (Bernama) -- A new study from Juniper Research has found cumulative merchant losses to online payment fraud globally between 2023 and 2027 will exceed US$343 billion. (US$1 = RM4.433)

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.

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 this will require significant capabilities to achieve.

Report author Nick Maynard, who is Juniper Research head of research, explained in a statement: “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.”

The research identified physical goods purchases as the largest single source of losses; accounting for 49 per cent of cumulative online payment fraud losses globally over the next five years, and growing by 110 per cent.

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 merchants adopt strong anti-fraud measures, including multiple sources of address verification and multi-factor authentication to reduce fraudulent incidents for physical goods merchants.

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

-- BERNAMA