Global online payment fraud losses tipped to exceed $343bn
Cumulative merchant losses to online payment fraud globally are projected to exceed US$343 billion during the next five years, according to Juniper Research.
Fraudster attacks include phishing, business email compromise and socially engineered fraud on money transfer transactions, sale of digital or physical goods, airline ticketing and banking.
The report’s author, Nick Maynard, said there is no one-size-fits-all solution for securing online transactions as no two transactions are alike.
“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,” he said.
Over the next five years, physical goods purchases will account for nearly 49 per cent of cumulative online payment fraud losses, making it the largest single source of losses.
Given that address verification processes are “lax” in developing markets, fraudsters easily target physical goods specifically, due to their resell prospect.
The report recommends vendors employ strong verification tools such as multi-factor authentication and multiple sources of address validation to better protect users and their businesses.