Spending on online fraud prevention to soar by 30% by 2020
eCommerce merchants and financial institutions are set to spend $9.2bn on preventing fraud by 2020 – a 30% rise on current levels.
The figures, from new report Online Payment Fraud: Key Vertical Strategies and Management 2015-16 by Juniper Research, suggest such companies will be working particularly hard to prevent fraudsters targeting mobile transactions.
This is because many companies have yet to apply the same levels of protection to mobile as they have to desktop, it added.
Juniper Research predicts that the global value of online payment transaction fraud is set to hit $25.6bn by 2020 with three areas particularly vulnerable for online fraud.
These include eRetail (65% of fraud by value), online banking (at 27%) and airline ticketing (6%). Buy online, pay instore and electronic gift cards were identified as two of the key targets for eRetail fraud.
Fraud grew by 7.1% in 2015 compared to the year before with 1 in every 67 transactions a fraudulent attempt, a figure 7.1% up on the year before.
According to the RSA Anti-Fraud Command Center nearly 42% of all consumer eCommerce transactions were initiated from a mobile device in the US in 2015.
In the same period, the number of fraudulent transactions on mobile devices increased by 142% in 2015 compared to 2014 but web-based fraud rose by only 3%, according to Juniper Research.
The study also saw Juniper assess 12 solution vendors in the market – based on a range of criteria that included technological innovation, fraud detection performance, product range and strength of partnerships.
Its analysis identified CyberSource, Experian and FICO as the leading plyers in the fraud detection and prevention space.
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