Online fraud: Over $ 200 billion in damage expected by 2025

According to a recent study by the market research institute Juniper Research, damage in the hundreds of billions is expected from online fraud in the next few years. The authors of the study are demanding that the security tool providers follow suit.

How much is $ 206 billion? This sum corresponds to almost ten times the net sales of Amazon in the corona record year 2020. According to the findings of a new study by Juniper Research, the worldwide damage caused by online fraud will add up to this amount over the next five years.

With a share of 47 percent lonely at the top, there is one crime: Identity theft in online retail. Specifically: the perpetrators order goods under a false name, at fake addresses, via hacked user accounts or with stolen credit card information. According to the study’s authors, the corona pandemic has given this criminal activity an additional boost.

11.8 billion for fraud detection

Not only are the costs of damage incurred considerable, the costs for platforms for fraud detection and prevention are also increasing. For 2021 Juniper estimates the total of the expenditures at 9.3 billion US dollars worldwide, in 2025 it should be 11.8 billion.

The study authors derive two demands from the worrying figures:

  1. Merchants must make fighting fraud an immediate priority through the use of machine learning-based fraud prevention platforms.
  2. And the providers of payment service providers must look to work together with fraud prevention solution providers. Because in order to train the algorithms of the anti-fraud tools, the providers need training data in large quantities – the payment service providers have it.
Juniper Research isn’t the first company to raise awareness of the problem of increasing identity theft cases. At the end of June, the business credit agency CRIF Bürgel documented the current status for the DACH region in a study. Accordingly, more than 90 percent of all online retailers surveyed had registered attempts at fraud in the past twelve months.

Source: com! professional by

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