Global e-commerce losses to online payment fraud to exceed US$48 bln in 2023 -- Juniper Research

Online Payment Fraud market infographic (Graphic: Business Wire)

KUALA LUMPUR, Oct 13 (Bernama) -- The total cost of e-commerce fraud to merchants will exceed US$48 billion globally in 2023, from just over US$41 billion in 2022, according to a new Juniper Research study. (US$1=RM4.685)

In a statement, it predicted that this growth will be accelerated by the increasing use of alternative payment methods, such as digital wallets and Buy-Now-Pay-Later (BNPL), which are creating new fraud risks.

The report recommended that fraud prevention vendors focus on building platforms providing artificial intelligence‑powered risk-based scoring, which can be payment method agnostic, to best suit changing market conditions.

Online payment fraud includes losses across 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 compromises and socially engineered fraud.

The research identified North America as having the largest fraudulent transaction value of any regional market, accounting for over 42 per cent of global fraud by value in 2023, despite representing less than seven per cent of banked individuals globally.

The research cited the vast volume of data breaches and the broad availability of stolen credit card information as key risk factors in this market.

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

-- BERNAMA