AI-Powered eCommerce Fraud Set to Surpass $107 Billion by 2029, Study Reveals

eCommerce Fraud to Exceed $107 Billion in 2029

HAMPSHIRE, United Kingdom, Oct. 07, 2024 (GLOBE NEWSWIRE) -- A new study from Juniper Research, the foremost experts in fintech and payment markets, has revealed the value of eCommerce fraud will rise from $44 billion in 2024 to $107 billion in 2029; a growth of 141%. The study found that AI is fuelling the sophistication of attacks across the eCommerce ecosystem, with the use of deepfakes created using AI to defeat verification systems being a key threat. This threat, combined with rising levels of 'friendly fraud', where fraud is committed by the customer themselves, such as refund fraud, is increasingly threatening merchant profitability. An extract from the new report, Global Merchant Fraud Prevention Market 2024-2029, is now available as a free download. AI Use by Fraudsters Driving Risk AI is enabling fraudsters to remain ahead of security measures and commit sophisticated attacks on a greater scale. By creating credible messages and a large number of synthetic identities, AI is facilitating higher quality attacks with an unprecedented frequency. These technologies are also highly scalable; empowering fraudsters to heavily automate their attacks and overwhelm rules-based prevention systems. Report author Thomas Wilson added, "eCommerce merchants must seek to integrate fraud prevention systems that offer AI capabilities to quickly identify emerging tactics. This will prove especially important in developed markets, where larger merchants are at higher risk of being targeted for fraud, such as testing stolen credit cards." How Should Merchants React? Merchants are employing these same technologies to recognise emerging fraud patterns and react in real-time. Merchants must work to incorporate biometric identification into checkout processes to further secure transactions. By using methods such as liveness detection, merchants will be able to protect their business and customers from increasingly sophisticated AI deepfake fraud attempts. About the Research Suite The new market research suite offers the most comprehensive assessment of the merchant fraud prevention market to date; providing analysis and forecasts of over 25,000 datapoints across 60 countries over five years. It includes a 'Competitor Leaderboard' and examination of current and future market opportunities. Juniper Research has, for two decades, provided market intelligence and advisory services to the global financial sector, and is retained by many of the world's leading banks, intermediaries and providers. For further details please contact Sam Smith, Press Relations T: +44(0)1256 830002 E: sam.smith@juniperresearch.com Market News and Data brought to you by Benzinga APIs

Ecommerce fraud to exceed $100bn by 2029

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community. A study from Juniper Research found that the money lost to online fraud will rise from $44bn in 2024 to $107bn in 2029, an increase of 141%. The research, Global Merchant Fraud Prevention Market 2024-2029, cites the role of AI in making attacks on the ecommerce ecosystem more sophisticated. In particular, the report credits the use of deepfakes to defeat verificatio systems as "a key threat". AI is also enabling higher quality attacks on a greater scale and at a faster rate. Consequently, Juniper is calling for ecommerce merchants to integrate fraud prevention systems with AI capabilities to quickly identify emerging tactics from fraudsters. "This will prove especially important in developed markets, where larger merchants are at higher risk of being targeted for fraud, such as testing stolen credit cards," said report author Thomas Wilson.