Science & Technology

Merchant losses to online payment fraud will exceed $206 billion by 2025

This figure is equivalent to almost 10 times Amazon’s net income in the 2020 financial year

merchant losses

Merchant losses to online payment fraud will exceed $206 billion by 2025. Source: pexels.com

According to Juniper Research, merchant losses to online payment fraud will exceed $206 billion cumulatively for the period between 2021 and 2025.

The research identified that the pandemic has led to a surge in synthetic identity and account takeover fraud, which threaten the security of entire accounts, alongside associated payment data.

It found that remote physical goods purchases are the leading cause of online payment fraud, accounting for over 47% of fraud losses in 2021.

Given the large amounts of online payment transactions globally, it is essential that this transactional data is leveraged to continually detect fraudulent transactions. Payment providers who can use this data to identify new fraud sources and tactics will be those who prove to be the most resilient to this significant market loss
Nick Maynard, research co-author 

The research also found that spending on fraud detection and prevention platform services will exceed $11.8 billion globally in 2025, from $9.3 billion in 2021.

We’ve reported that cyber insurance industry to exceed $20 billion by 2025.

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