28 June 2023
Find out the top fraud detection and prevention vendors ranked in the study and learn how AI is being utilized to combat emerging threats.
A groundbreaking study conducted by Juniper Research, renowned experts in payment markets, has revealed that merchant losses resulting from online payment fraud are projected to surpass a staggering $362 billion globally between 2023 and 2028. The study predicts that in 2028 alone, losses will amount to a staggering $91 billion. The alarming surge in eCommerce transactions, particularly in emerging markets, has emerged as a key driver behind this exponential growth. Merchants operating in these markets face an unprecedented array of threats, including the mounting use of artificial intelligence (AI) by cybercriminals to perpetrate attacks.
Online payment fraud refers to the deceptive or illicit online transactions carried out by cybercriminals employing various fraudulent strategies such as phishing or account takeover. The new report titled “Online Payment Fraud: Market Forecasts, Emerging Threats & Segment Analysis 2023-2028” offers detailed insights into this growing menace. A complimentary sample of the report is available for download to those seeking further information.
Additionally, Juniper Research has unveiled its highly anticipated Competitor Leaderboard for 2023, which assesses the top 21 vendors specializing in fraud detection and prevention. The Leaderboard rankings were determined through a robust scoring methodology, considering factors such as the size of the vendor’s customer base, the comprehensiveness of their solutions, and their future business prospects.
The top five fraud detection and prevention vendors for 2023, as identified by the study, are as follows:
- LexisNexis Risk Solutions
- Experian
- ACI Worldwide
- Visa
- FICO
The research findings highlight that these leading players have excelled due to the breadth of their anti-fraud orchestration capabilities and their effective use of AI in analyzing trends in fraudster behavior. To maintain a competitive edge, vendors must leverage data collected throughout the eCommerce process to enhance their fraud detection and prevention solutions by continually training and advancing their AI models.
Cara Malone, the research author, emphasized the importance of educating clients on the significance of data sharing for optimal accuracy within fraud detection and prevention solutions. This is particularly crucial given the growing reliance on AI, which utilizes diverse data sets to identify patterns in fraudulent activities. Such an approach is invaluable in an environment where fraudsters often engage in large-scale attacks rather than targeting specific individuals.
Malone stated, “Fraud detection and prevention providers must educate their clients in the importance of data sharing, in order for the highest accuracy within their solutions. This is increasingly important with the growing use of AI, as it utilizes a variety of data to examine patterns within fraud, which is extremely advantageous in a space where fraudsters usually attack at scale, rather than attacking a specific customer.”
The research by Juniper Research serves as a wake-up call for merchants, urging them to fortify their defenses against the escalating threat of online payment fraud. With losses projected to soar in the coming years, the adoption of advanced fraud detection and prevention measures, coupled with the collaborative sharing of data, has become paramount to safeguarding the global eCommerce landscape.
