Hamburg-based desk research company yStats.com’s latest publication, “Europe Online Payment Fraud and Security 2022” analyzes both global and European online payment markets in terms of fraud and security issues, forecasts, and proposed solutions. The report analyzes trends related to online and mobile payment security in Europe and reveals the wide impact of fraudulent activities on the European E-Commerce payment market.
Fraudulent Digital banking transactions committed via a mobile app become more common in Q2 2021
As mobile phone usage for such online activities as shopping, making payments, and banking has risen, fraudsters have increasingly targeted these devices. The share of fraudulent digital banking transactions executed via a mobile app has increased steadily over the past couple of years worldwide. In Q2 2021, over 50% of fraudulent digital banking transactions were on a mobile device. A November 2020 survey revealed that nearly half of Austrian respondents reported being victims of internet fraud. In France, almost four in five adults surveyed in October 2021 said they were afraid of becoming victims of fraud when making mobile online payments remotely. These security concerns have changed payment habits in the UK and Germany.
As the E-Commerce market continues to thrive, losses due to online payment fraud are expected to grow
As E-Commerce expands rapidly across the globe, so do cases of fraud. Both legitimate and fraudulent transactions saw a sharp increase in 2020 as consumers switched to online shopping in droves in response to the COVID-19 pandemic. Extensive fraudulent activities were flagged in the European region. For instance, in the DACH region (Germany, Austria, and Switzerland), over 90% of online retailers report either fraud or attempts at fraud between March 2020 and March 2021. The value of losses related to E-Commerce fraud on UK-issued cards has increased steadily during recent years. Online transactions comprised more than 60% of total card fraud in 2020 in the United Kingdom. Close to two-thirds of German E-Commerce companies identify an increase in fraud concurrent with the COVID-19 pandemic.