Juniper expects that the value of online fraudulent transactions will reach USD 25,6 billion by 2020, up from USD 10,7 billion last year, meaning that USD 4 in every USD 1,000 of online payments will be fraudulent.
According to the Juniper study, the implementation of chip and PIN services at POS locations in the US will likely be a key factor driving activity in the online fraud space, with the greater security afforded by chip and PIN to persuade fraudsters to switch their attention from the in-store environment to the CNP space.
The main online fraud areas are: ecommerce (65% of fraud by value in 2020 – USD 16,6 billion), banking (27%– USD 6,9 billion) and airline ticketing (6% – USD 1,5 billion).
While banks are able to counter online banking fraud via the deployment of new technologies such as 3D Secure and device fingerprinting, the research has found that these measures often only provide temporary respite as fraudsters quickly find new ways to defraud.
Juniper also notes that extensive efforts by the airline industry to deploy sophisticated fraud detection and prevention (FDP) systems has reduced fraud significantly for some major airlines, however fraudsters have shifted focus to other perceived weak spots in the system.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now