The latest publication from Hamburg-based market research company yStats.com titled “Fraud and Security in Global Online Payments 2024” shares insights into the global online payment market focusing on fraud and security issues, latest trends, forecasts as well as undertaken security measures. The publication reveals that global B2C E-Commerce losses from online payment fraud are forecast to soar between 2023 and 2028.
Asia-Pacific set to have the highest online payment fraud loss globally by 2025
As B2C E-Commerce continues to burgeon, businesses and consumers worldwide are facing heightened susceptibility to fraud. Forecasts show that global B2C E-Commerce losses from online payment fraud are anticipated to soar at around +40% CAGR between 2023 and 2028, reaching a number in the billions. Regionally, Asia-Pacific is projected to lead the online payment fraud loss, by 2025, followed by North America and Europe. Notably, North America currently commands the highest share of total fraudulent B2C E-Commerce transaction value, with Europe ranking second.
To counteract the rising tide of financial crime, global financial crime prevention expenditure is expected to surge by 2027, with a significant number of global respondents agreeing that “biometric authentication makes online payment safer” as of April 2023.
The UK witnesses declining rates in CNP payment fraud
In the UK, data cited in the report show that unauthorized payment card fraud decreased from H1 2022 to H1 2023. Similarly, card-not-present (CNP) payment fraud fell by over 10% in the same period. Turning to the USA, CNP fraud loss is expected to rise in 2024, constituting around three-quarters of the total payment fraud loss. Approximately one-quarter of US adults reported falling victim to account takeover (ATO) attacks in 2023. Additionally, while around 1 in 10 banking customers reported P2P payment scams as of May 2023, more than half of them were satisfied with their bank’s response to P2P fraud claims.