Keep your payment service provider close, and your fraud prevention partners closer
The payments ecosystem is increasingly dynamic and so too is the fraud landscape that threatens it. The UK is the second-largest country for online transactions in 2022; this is set to continue, despite ongoing global supply chain issues and inflationary pressure. At the same time, this increase in online transactions brings another problem: digital commerce fraud.
Merchants need to have a detailed understanding of their payment profile to manage threats and balance risk. According to the Merchant Risk Council, the amount merchants spend to tackle online fraud increased five-fold between 2019 and 2021. In 2019, eCommerce merchants spent an average of 2 percent of their annual revenue on fraud prevention. By 2021, that share had grown to 10 percent. However, it’s a battle merchants are continuing to lose, especially in the UK. Additional data collected from Merchant Machine suggests that the UK has the highest number of fraud cases per 1,000 inhabitants (123), with €10,414 stolen by fraudsters for every 1,000 citizens.