Online payment fraud loss to grow 50 percent in Europe by 2024
By 2024, financial loss caused by online payment fraud will cost eCommerce merchants more than $25 billion annually, compared to just $17 billion in 2020, says a new study from Juniper Research. eCommerce losses will register 52 percent growth, even though companies in Europe are implementing biometrics and other methods of SCA (Secure Customer Authentication).
Titled Online Payment Fraud: Emerging Threats, Segment Analysis & Market Forecasts 2020-2024, the report warns criminal interest in eCommerce payments has increased following the growth of digital transactions and increased card-present transaction security with the introduction of EMV for smart payment cards. Non-European eCommerce companies are advised to also implement SCA strategies such as two-factor authentication and payment gateways to prevent sophisticated fraud attacks.
Payment security measures and user training into cybersecurity best practices and common fraud tactics should be part of fraud mitigation strategies. According to the report, some 42 percent of global payment fraud in 2024 will be in China.
“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,” said Nick Maynard, research co-author, in a prepared statement.
However, Juniper Research warns that while companies should focus on additional security measures, they should ensure checkout experience remains frictionless for users, otherwise they could risk a high cart abandonment rate. More details can be reviewed in the white paper Fighting Online Payment Fraud in 2020.
Research from Mastercard in Latin America and the Caribbean late last year indicates that most consumers would like to use biometrics to authenticate online payments.