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ECommerce retailers and financial institutions have been set to spend $9.2bn on preventing fraud by 2020 — a 30% rise on present levels.
The statistics, from brand new report Online Payment Fraud: Key Vertical Strategies and Direction 2015-16 from Juniper Research, imply such business will be working particularly difficult to prevent fraudsters targeting mobile transactions.
This is because many businesses have yet to apply the same levels of protection as they need to desktop, it added.
Juniper Research forecasts that the international value of online payment fraud is set to hit25.6bn by 2020 with three areas especially vulnerable for internet fraud.
eRetail fraud
These include eRetail (65 percent of fraud by value), online banking (at 27%) and airline ticketing (6 percent). Pay instore buy online and digital gift cards have been identified as two of the goals for fraud.
Fraud grew by 7.1 percent in 2015 compared to the year before with 1 in each 67 trades a fraudulent attempt, a figure 7.1% up on the year earlier.
According to the RSA Anti-Fraud Command Center nearly 42% of consumer eCommerce trades were initiated by a device in the US.
In precisely the same period, the amount of transactions on mobile devices rose in comparison to 2014 but fraud rose by just 3%, according to Juniper Research.
The analysis saw Juniper assess 12 alternative sellers in the marketplace — based on a range of criteria which included product scope, fraud detection functionality, innovation and strength of partnerships.
Its analysis identified Experian CyberSource and FICO as the leading plyers in the fraud detection and avoidance space.
