Retailers will lose $71bn due to payment fraud
Retailers are facing losses of up to $71 billion globally as the number of fraudulent card-not-present (CNP) transactions rises hugely within the next five years.
A new report from Juniper Research has revealed that a number of different factors are driving the increase in fraud, including the US shifting towards EMV cards, delays in 3DS 2.0 and click-and collect fraud methods.
The report, entitled Online Payment Fraud: Emerging Threats, Key Vertical Strategies & Market Forecasts 2017-2022, claims many retailers still see cyber-security solutions as too expensive. Juniper Research believes they will be underprepared for frauds when EMV gets introduced in the States.
The report also says that the retailers’ claims of cybersecurity solutions being too expensive don’t hold water.
"Juniper’s cost analysis of FDP (fraud detection and prevention) solutions found that in most instances, merchants would receive value from their investment," the report says.
"The analyst house therefore urged players across the value chain to increase their efforts in educating merchants on the benefits of FDP."
"2018 will herald the arrival of new tools in the fight against fraud", notes research author Steffen Sorrell. "3DS 2.0 will finally begin to rollout and will mark a paradigm shift in terms of merchants and issuers leveraging shared data. We also expect passive biometrics, such as the manner in which a device is handled, to become key in the future."
You can read Juniper Research’s full report on this link.
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