A recent report from Juniper Research estimates that worldwide eCommerce fraud rises from $44.3 billion in 2024 to $107 billion by 2029, reflecting a 141% increase. This growth largely stems from fraudsters using artificial intelligence (AI) to execute sophisticated attacks, including the creation of deepfakes that effectively bypass verification systems.
The report highlights the increasing incidence of “friendly fraud,” where customers commit scams like refund fraud, further threatening merchants’ profitability. With AI technology, fraudsters automate their schemes, making it more difficult for traditional fraud prevention methods to keep up.
To address this rising threat, the report recommends that eCommerce merchants implement AI-driven fraud detection systems and biometric identification methods, such as liveness detection, to enhance transaction security.
In Nigeria, experts point out that fraud presents a significant barrier to eCommerce growth, leading many potential buyers to hesitate. Customers frequently prefer pay-on-delivery options due to concerns over payment security, while merchants struggle with challenges like identity theft and chargeback fraud.
