Juniper urges behavioral biometrics as ecommerce fraud costs to leap 18 percent to $20B
Ecommerce retailers’ annual losses will reach $20 billion this year, Juniper Research says, an 18 percent jump from $17.5 billion in 2020. Behavioral biometrics, however, can help address this problem across all channels, according to the new report.
‘Online Payment Fraud: Emerging Threats, Segment Analysis & Market Forecasts 2021-2025’ shows merchants are hesitant to introduce friction into their checkout processes, despite wanting to make changes to reduce fraud. Juniper found that clear messaging around security checks, and implementing behavioral biometrics are key capabilities for preserving user experience.
“While the need for security is greater than ever, the competitive eCommerce environment means merchants will need to ensure that extra security checks are justified to the user, or they risk higher cart abandonment rates,” explains report Co-author Susan Morrow.
The report also considers the growth of synthetic identities and open APIs, instant payments, and fraud prevention market leaders. Fraud is considered in air travel, digital banking, digital money transfers, purchases of digital goods and purchases of physical goods.
China will the largest market for ecommerce fraud by region going forward, the report forecasts, with fraud losses over $12 billion by 2025.
Juniper also recently published a white paper on ‘Fighting online payment fraud in 2021.’
Digital identity fraud losses overall for 2020 were pegged at $43 billion by Javelin Strategy & Research.