E-commerce merchant losses caused by online payment fraud will exceed $25bn in 2024, a significant jump from the $17bn expected to occur in 2020, according to a study from Juniper Research.
The report, Online Payment Fraud: Emerging Threats, Segment Analysis & Market Forecasts 2020-2024, claims that the popularity of e-commerce and card-present security, have made online payments an attractive target for criminals. Juniper states that merchants outside of Europe need to adopt protocols similar to secure customer authentication (SCA) if they wish to reduce fraud levels.
It also claims that payment gateways are vital to ensure security requirements are implemented at scale.
Juniper also stated that in addition to implementing strong security measures, e-commerce companies need to offer more education to their users around cybersecurity practices, common fraud methods, as well as changes to the checkout process to improve fraud mitigation. This is key for China, which Juniper believes will account for 43% of all e-commerce payment fraud by 2024.
Research co-author Nick Maynard said, “The explosion of eCommerce means that fraudsters have evolved their tactics, and so merchants must also evolve. eCommerce merchants must educate their users in anti-fraud best practice, as the human element is consistently the most vulnerable to exploitation in the online payments ecosystem.”
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