Security News > 2022 > October > Alternative payment methods are creating new fraud risks

eCommerce fraud to merchants to exceed $48 billion / eCommerce merchants must step up their fraud prevention strategies.

A Juniper Research study found that the total cost of eCommerce fraud to merchants will exceed $48 billion globally in 2023, from just over $41 billion in 2022.

It predicted that this growth will be accelerated by increasing use of alternative payment methods, such as digital wallets and BNPL, which are creating new fraud risks.

The report recommended that fraud prevention vendors focus on building platforms providing AI‑powered risk-based scoring, which can be payment method agnostic, to best suit changing market conditions.

Online payment fraud includes losses across sales of digital goods, physical goods, money transfer transactions and banking, as well as purchases like airline ticketing.

Research author Nick Maynard explained: "To combat this fraud, eCommerce merchants must implement simple steps such as address verification, combined with risk-based scoring on transactions, which will allow merchants to best mitigate the massive fraud threats present."

News URL

https://www.helpnetsecurity.com/2022/10/14/ecommerce-merchants-fraud/