Losses from online payment fraud is expected to reach $48bn by 2023, more than double that projected for 2018.
In a new study from Juniper Research, the company has found that annual losses from online fraud, which includes e-commerce, banking services, money transfers and airline ticketing, is expected to reach $48bn by 2023. The annual losses for 2018 is anticipated to be around $22bn.
Its new report, Online Payment Fraud: Emerging Threats, Segment Analysis & Market Forecasts 2018-2023, attributes the continued high level of data breeches and theft of personal data is a core driver of this steep increase.
Juniper claims that criminals are no longer using information gathered from widespread data leaks for pure identity theft, but instead using fragments of real data to build new synthetic identities.
Research author Steffen Sorrell said, “Synthetic identity is currently the low-hanging fruit because, even though it takes time for fraudsters to establish, many of their targets are not set up to detect the behavioural giveaways that indicate this type of fraud. Fraud management providers have solutions on the market to combat this, but the industry as a whole is playing catch-up.”
As instant payment schemes increase around the world, and a focus is put on transactional instead of behavioural risk, the report states money transfers will be at significant risk, increasing by more than 20 per cent per annum, reaching $10bn by 2023.
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