A recent study from Juniper Research forecasts substantial growth in payments made from digital wallets with increasing acceptance at eCommerce checkouts as one of the driving forces of their growth. Digital wallet transactions are forecasted to reach $7.5 trillion globally in 2022 and grow to $12 trillion by 2026. Merchants need to ensure their risk management strategies are equipped to handle digital wallet payment growth while understanding the risks of accepting payments from digital wallet accounts that may have been compromised by fraudsters.
The forecasted growth in digital wallet payments represents a 60 percent compound annual growth rate from 2022 to 2026 in what is already a large global payments market. Fraudsters have a tendency to flock to what is new, as well as emulate overall consumer patterns to hide in the normalcy and volume. While digital wallets are not new, they may be new forms of payment accepted by many eCommerce merchants, making those merchants prime targets for monetizing digital wallets fraudsters have taken over.
Many organizations dismiss the threat of peripheral account takeover attacks, especially when the liability of fraud falls on a digital wallet rather than the merchant directly, as is the case with Apple Pay. Even when the burden of financial fraud liability has shifted, merchants must still consider brand risks when being attacked with fraudulent transactions from digital wallets suffering from account takeover. The risk of peripheral account takeover attacks is discussed in a recent article from The Fraud Practice.
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