A new study from Juniper Research forecasts that merchant losses from online payment fraud will exceed $362-billion globally between 2023 to 2028, with losses of $91-billion alone in 2028.
A rise in e-commerce transactions in emerging markets is driving this growth. Merchants there are facing new threats, such as an increased use of AI for attacks.
Online payment fraud is where cybercriminals conduct false or illegal transactions online, using a number of different fraud strategies, such as phishing or account takeover.
As part of the study, Juniper Research released its latest Competitor Leaderboard for 2023. Underpinned by a robust scoring methodology, the new Competitor Leaderboard ranked the top 21 fraud detection and prevention vendors, using criteria such as the relative size of their customer base, completeness of their solutions and their future business prospects.
The top five vendors for 2023 are LexisNexis Risk Solutions, Experian, ACI Worldwide, Visa and FICO.
The research found that the leading players scored well based on the breadth of their anti-fraud orchestration capabilities, as well as their use of AI for analysing trends in fraudster behaviour.
In order to stay ahead of the competition, vendors must utilise data collected throughout the e-commerce process to further develop their fraud detection and prevention solutions through training and advancing AI models.
Research author Cara Malone comments: “Fraud detection and prevention providers must educate their clients in the importance of data sharing, in order for the highest accuracy within their solutions. This is increasingly important with the growing use of AI, as it utilises a variety of data to examine patterns within fraud, which is extremely advantageous in a space where fraudsters usually attack at scale, rather than attacking a specific customer.”