The annual losses caused by online payment fraud will double in the upcoming 5 years. They’re expected to account for $48bn. This is what Juniper Research reports. If you want to learn more about the topic and know how merchants can best protect their business against online fraud, just keep on reading this article.
Avoid Online Fraud Losses
The analyses by Juniper Research reveal that online payment fraud will cause even greater losses in the near future. The results are found in the research company’s “Online Payment Fraud: Emerging Threats, Segment Analysis & Market Forecasts 2018-2023” report. The latter covers the following industries: eCommerce, airline ticketing, money transfer, as well as banking.
The online payment fraud associated with the mentioned areas is expected to increase from the $22bn losses that were projected for 2018. Also, the underground fraud-as-a-service economy will further develop and result in higher complexity.
Since instant payment schemes are rising and the focus is more on transactional risk instead of the behavioral one, money transfer would become less protected. Fraud losses will grow by more than 20% per annum and reach $10 billion in 2023.
Juniper further expects a CAGR in fraud rates of 13% for all segments, except for airline ticketing: here, expect to see a CAGR of 5.3%.
With all that being said, you can’t do without turning to a true credit card processing specialist if you want to protect your business against online fraud to the best possible extent. With a reputable merchant services provider, you can enjoy the most advanced fraud prevention services in the industry.
More on Online Payment Processing Fraud
The recent study by Juniper Research has found that retailers are expected to lose almost USD 130 billion because of card-not-present or CNP fraud by 2023. This is a fast-growing problem indeed.
In fact, complex cross-channel fraud will turn into the “new normal” soon, and retailers aren’t prepared to combat it. What’s more, the analyst forecasts that online payment companies will spend $9.6 billion per year on (Fraud Detection & Prevention) FDP solutions in 2023.
Did you know that online ad fraud made up $19bn in 2018? While blockchain technology is gaining more and more traction especially among major cryptocurrencies such as Bitcoin and Ethereum, this is only one application of the technology.
Blockchain guarantees an added layer of trust and verifiability in areas where opaqueness is the norm. It’s just great that blockchain can also be used to fight the mentioned fraud.
According to Experian, data breaches associated with video games are expected to be a hot-button topic this year. This type of fraud refers to stealing personal information like full names and phone numbers, passwords and credit card info. Online fraudsters can also get access to in-game tokens and weapons that can be worth a lot of money.
Finally, here’re the main dynamics expected to change fraud this year:
- PSD2 (revised Payment Services Directive)
- Real-time payments
- 3-D Secure 2.0
Online payment processing fraud is still growing all over the world. What you need to do is to work only with the best payment processing professionals in the field so to be able to avoid falling into the trap of fraudsters.
Author Bio: Electronic payments expert Blair Thomas is the co-founder of high risk payment processing company eMerchantBroker that can best protect merchants from online fraud. He’s just as passionate about his business as he is with traveling and spending time with his dog Cooper.