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With the enhancement of E-Commerce globally, the losses to online payment fraud are expected to grow

With the increasing pattern of mobile phone usage for online activities such as shopping, making payments, or banking, fraudsters started to follow up and target these devices too. Namely, the share of digital banking fraudulent transactions worldwide executed via a mobile app witnessed a steady increase in the past years, with the total share of fraud committed on a mobile reaching over 50% in Q2 2021. In China, the most common security issue that happened in mobile payments was personal information leakage in 2020. Furthermore, most mobile payment users in China claimed that “security” needs improvement in mobile payments in 2020. In France, almost 4 in 5 adults were afraid of becoming victims of fraud when making mobile online payments remotely, as per an October 2021 survey. In Vietnam, nearly a third of those surveyed in September 2020 were motivated to use mobile payments thanks to safety and security. In addition, as E-Commerce worldwide expands at a great pace, so do the fraud cases, which especially proliferated in 2020 after the new coronavirus broke out. This is because consumers globally switched intensively to online shopping. So, the value of B2C E-Commerce losses to online payment fraud worldwide was anticipated to increase by 18% y-o-y between 2020 and 2021, to surpass 20 billion US dollars in 2021. Similarly, extensive fraud actions were seen in the European region. For instance, over 90% of online retailers experienced frauds or fraud attempts in the past 12 months in the DACH region (Germany, Austria, and Switzerland as of March 2021. The value of E-Commerce fraud loss on the UK-issued cards in the United Kingdom increased steadily over the years, as did its share, holding well above 60% of total card fraud in 2020. In the United States, however, the share of successful monthly fraud attacks in E-Commerce declined greatly by 23 p.p. from 2020 to 2021.

Moreover, the behavior and preferences of consumers worldwide considerably changed over the past couple of years. It was also the case with respect to security. It should be noted that over 80% of consumers globally considered “security” as the important factor during their online experience, as per a September 2021 survey. When it comes to the attitudes towards interacting with businesses online, almost half of the surveyed consumers over the world in January 2021 claimed that they felt safer as businesses put in more complex security procedures. In addition, 3 in every 5 consumers in the Asia-Pacific stated that they used more security steps while online, as of January 2021. In Canada, almost 70% of the respondents to a February 2021 survey believed that shopping online led to increased fraudulent activity, thus, over half of them felt safer shopping in brick-and-mortar stores. Hence, consumers increasingly opted for securing their experiences with authentications, for example using facial recognition when making online payments which is projected to grow about 16% CAGR between 2020 and 2025 over the globe. Furthermore, the number of global users confirming their transactions with a voice recognition technology is forecasted to grow significantly at a CAGR of 45% between 2020 and 2025.