The total amount that ecommerce companies will lose to online payment fraud will exceed $25 billion in 2024, compared to $17 billion in 2020, according to a new study by Juniper Research.
The significant increase comes in spite of the continuing strengthening of customer authentication measures across Europe.
The new research, Online Payment Fraud: Emerging Threats, Segment Analysis & Market Forecasts 2020-2024, found that the popularity of ecommerce and increased card-present security with the introduction of EMV, have made ecommerce payments a compelling target for fraudsters.
It also outlined that merchants outside Europe will be forced to adopt similar measures to those that have been utilised in the continent in order to ensure they halt the rise of fraud, key to this will be methods like two-factor authentication, or they will suffer from increasing levels of sophisticated fraud.
The new research observed that as well as implementing further payment security measures, eCommerce merchants must take on a more educational role for their users. This role will primarily be education about cybersecurity practices, common fraud methods and changes to the checkout process to improve fraud mitigation. This will be essential in China, which will account for 42% of all eCommerce payment fraud in 2024.
Research co-author Nick Maynard explained: “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.”
