Juniper forecasts online payment fraud jump despite widespread digital identity verification
The high levels of fraud that have plagued online payment systems are not about to let up. Far from it, according to the latest figures from Juniper Research.
The firm forecasts that $343 billion will be lost from online payments systems to fraudsters between 2023 and 2027. The ‘Online Payment Fraud: Emerging Threats, Segment Analysis & Market Forecast 2022-2027’ report examines phishing, email compromises, and social engineering fraud across the money transfer, banking, digital and physical goods, and airline ticketing.
Fraud prevention vendors will need to respond by orchestrating the right combination of digital ID verification tools, according to the report.
“Fundamentally, no two online transactions are the same, so the way transactions are secured cannot follow a one-size-fits-all solution,” explains report author Nick Maynard. “Payment fraud detection and prevention vendors must build a multitude of verification capabilities, and intelligently orchestrate different solutions depending on circumstances, in order to correctly protect both merchants and users.”
The payment fraud rate will be driven by innovation in fraud types like account takeovers, and despite the widespread adoption of digital identity verification.
Physical products are expected to be the single largest source of losses. Fraud of this kind is forecast to grow by 110 percent, and make up just slightly under half of all online payment fraud losses globally. Juniper recommends the use of multiple sources of address verification, along with multi-factor authentication, to stem the tide.