With the rise of e-commerce, fraud has increased dramatically
The continuous development and strengthening of e-commerce is unfortunately accompanied by a corresponding increase in cases of fraud. According to a new study by Juniper Research entitled “Online Payment Fraud: Emerging Threats, Segment Analysis & Market Forecasts 2021-2025”, the amount of losses due to e-commerce fraud will increase by 18% this year, to more than $ 20 billion, up from $ 17.5 billion in 2020.
The investigation found that fraudsters targeted consumers more as the use of e-commerce channels increased during the pandemic and restrictive measures, exposing the weaknesses of the multi-platform data protection systems, leaving consumers exposed to any form of risk.
Juniper Research also found that China will become the largest single market for e-commerce fraud in the world, with 2025 estimated to account for more than 40% of global e-commerce fraud losses by 2025, over $ 12 billion.
According to Juniper Research, online retailers operating in China need to invest in fraud detection and prevention as quickly as possible so that they do not have to deal with more and more damage to their already marginal operating margins.
Also, in all markets, the study recommends that retailers use artificial intelligence (AI) biometrics to increase security on all potential channels that are vulnerable to fraud.