According to a report by Juniper Research, global e-commerce payment fraud losses are expected to reach $343 billion in 2023. This represents an increase of 31% from 2022.
The report attributes the increase in fraud losses to a number of factors, including:
- The growing popularity of e-commerce: E-commerce sales are expected to reach $4.9 trillion in 2023, up from $3.5 trillion in 2022. This growth will provide more opportunities for fraudsters to target e-commerce merchants.
- The increasing sophistication of fraudsters: Fraudsters are constantly developing new techniques to evade detection. This makes it more difficult for merchants to prevent fraud.
- The lack of awareness among consumers: Many consumers are not aware of the risks of e-commerce fraud. This makes them more likely to fall victim to scams.
To combat e-commerce payment fraud, merchants need to implement a layered approach to security. This includes measures such as:
- Strong customer authentication (SCA): SCA requires merchants to verify the identity of their customers before authorizing a payment. This can be done using a variety of methods, such as two-factor authentication or biometric authentication.
- Fraud detection and prevention tools: There are a number of fraud detection and prevention tools available that can help merchants identify and prevent fraudulent transactions.
- Educating consumers: Merchants should educate their customers about the risks of e-commerce fraud and how to protect themselves.
By taking these steps, merchants can help to reduce the risk of e-commerce payment fraud.
