A new study from Juniper Research forecasts that the great merchant losses to fraud will be via remote physical goods purchases, with losses reaching $5.1 billion (€4.76 billion) across emerging markets in 2028, up from $1 billion (€0.93 billion) in 2023.
Africa and Middle East to experience great growth in losses
Juniper Research anticipated fraud losses in Africa and Middle East to reach $1.1 billion (€1.03 billion) in 2028; growing 643% from $150 million (€140.03 million) this year. This is due to limited adoption of effective fraud prevention tools in the region. Such tools are needed to keep pace with the increasing number of transactions, evolving payment methods and growing threats.
The research recommended merchants in the region adopt fraud detection and prevention systems as a priority, or eCommerce growth will translate into massive fraud growth; damaging merchant profitability.
Artificial intelligence key in analysing trends in fraudster behaviour
The research urged players to implement AI (artificial intelligence) for analysing trends in fraudster behaviour. This is important in emerging regions, as smartphone adoption causes mCommerce to grow at a fast rate. Therefore, fraud detection and prevention vendors must utilise data collected throughout the whole eCommerce process to further train and develop their AI fraud detection and prevention models.
Research author Cara Malone remarks, “With the growing use of AI, it is increasingly important for fraud detection and prevention providers to educate their clients, as AI utilises a variety of data to examine patterns within fraud. AI is extremely advantageous in a space where fraudsters attack at scale, rather than attacking a specific customer.”
Find out more about the new report, Online Payment Fraud: Market Forecasts, Emerging Threats and Segment Analysis 2023-2028, or download a free sample.
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