- Category: July–Sep 2023 - Security in Marketing
A new study from Juniper Research forecasts that the greatest merchant losses to fraud will be via remote physical goods purchases, with losses reaching $5.1 billion across emerging markets in 2028, up from $1 billion in 2023.
Juniper Research anticipated fraud losses in Africa & Middle East to reach $1.1 billion in 2028, growing 643% from $150 million this year. This is largely due to limited adoption of effective fraud prevention tools in the region. Such tools are needed to keep pace with the rapidly increasing number of transactions, evolving payment methods and growing threats.
The research recommended merchants in the region adopt fraud detection and prevention systems as a priority, or rapid eCommerce growth will translate into massive fraud growth, damaging merchant profitability.
Furthermore, Juniper Research urged players to implement AI for analyzing trends in fraudster behavior. This is important in emerging regions, as smartphone adoption causes mCommerce to grow at a rapid rate. Therefore, fraud detection and prevention vendors must utilize data collected throughout the whole eCommerce process to further train and develop their AI fraud detection and prevention models.
Research author Cara Malone remarked: “With the growing use of AI, it is increasingly important for fraud detection and prevention providers to educate their clients, as AI utilizes a variety of data to examine patterns within fraud. AI is extremely advantageous in a space where fraudsters attack at scale, rather than attacking a specific customer.”
The new market research suite offers the most comprehensive assessment of the online payment fraud market to date, providing analysis and forecasts of over 30,000 datapoints across 60 markets over five years. It includes a “Competitor Leaderboard” and examination of future market opportunities.
You might be interested in downloading Juniper Research’s whitepaper Combatting Online Payment Fraud report too.