A recent report from Juniper Research forecasts eCommerce merchant payment fraud losses to exceed $362 billion globally during the five year period ending in 2028, while eCommerce payment fraud losses are predicted to reach $91 billion in that year alone.
As more commerce shifts online, fraud in digital channels continues to grow as well. Much of the forecasted increase in payment fraud against eCommerce merchants is expected to come from the rise of eCommerce transactions in emerging markets, according to Juniper Research. Meanwhile, eCommerce payment fraud has grown as a percentage of total card payment fraud losses in the established markets like the United States as well. eMarketer predicts CNP fraud will represent nearly three-quarters of total payment card fraud losses in the US in 2023.
Cara Malone, one of the research analysts behind the Juniper report and forecast, focused on the use of data sharing as a means for merchants to collaboratively combat this increase in eCommerce payment fraud. “This is increasingly important with the growing use of AI, as it utilizes a variety of data to examine patterns within fraud,” Malone said.
According to the Juniper forecast, the average global merchant eCommerce payment fraud losses will be $72.4 billion per year between 2023 and 2028, as the actual annual loss amount ramps up each year to reach an estimated $91 billion in 2028.
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