Juniper predicts rise in online payment fraud despite widespread digital identity verification
The high levels of fraud that have plagued online payment systems are not about to stop. Far from it, according to the latest figures from Juniper Research.
The company predicts that $343 billion will be lost from online payment systems to fraudsters between 2023 and 2027 across money transfer, banking, digital and physical goods, and airline ticketing.
According to the report, fraud prevention vendors will need to respond by orchestrating the right mix of digital identity verification tools.
“Fundamentally, no two online transactions are the same, so how transactions are secured cannot follow a single solution,” says report author Nick Maynard. “Payment fraud detection and prevention vendors need to build a host of verification capabilities and intelligently orchestrate different solutions based on circumstances to properly protect merchants and users.”
The payment fraud rate will be driven by innovation in fraud types like account takeovers, and despite the widespread adoption of digital identity verification.
Physical products are expected to be the main source of losses. Fraud like this is expected to increase by 110% and account for just under half of all online payment fraud losses globally. Juniper recommends using multiple address verification sources, along with multi-factor authentication, to stem the tide.
Mitigating online payment fraud is a target area for several biometrics vendors, especially those that provide behavioral biometrics.
behavioral biometrics | biometrics | digital identity | fraud prevention | identity verification | Juniper Research | multi-factor authentication | Payments