Businesses in eCommerce, airline ticketing, money transfer and banking services will cumulatively lose over $200 billion to online payment fraud between 2020 and 2024, according to Juniper Research.
The loses will be driven by the increased sophistication of fraud attempts and the rising number of attack vectors, says the study which also found that digital money transfer is a growing area for payment fraud, with losses growing by 130% from 2020 to 2024.
The research found the increasing ubiquity of digital payments provides an ever-increasing attack surface for fraudsters. The research recommends that payments industry stakeholders focus on an omnichannel fraud approach to mitigate these challenges. This approach must encompass both strict cybersecurity at access points, as well as analytics such as machine learning, to identify fraudulent behavioural patterns.
The new research found that machine learning has become a crucial tool in the fraud detection and prevention arsenal, as it enables payments industry stakeholders to analyse transaction flows in a holistic way, unlocking hidden insights on fraudulent behaviours. The incorporation of machine learning into fraud detection and prevention software will drive spending forward, reaching $10 billion in 2024, a 15% increase on 2020.