Electronic Retailing Fraud Projected To Reach $16.6billion by 2020

A study conducted by Juniper Research, an analyst house in the digital commerce and FinTech sector, has shown that the volume of electronic retailing, e-Retail fraud committed globally is expected to reach $16.6 billion by 2020,

This figure is 65 percent of the total online fraud that will be committed between 2016 and 2020.

The study showed that the banking sector expected online frauds will hit $6.9 billion while airline ticketing will be $1.5 billion.

The report stated further that the total value of the online fraudulent transactions was expected to reach $25.6 billion by 2020. Juniper stated that the amount was almost twice that of 2015, which is $10.7 billion, noting that the study which identified three hot areas for online fraud observed that by the end of the decade, $4 in every $1,000 of online payments, will be fraudulent.

According to the study, titled “Online Payment Fraud: Key Vertical Strategies & Management 2016-2020”, the implementation of CHIP and PIN services at POS (Point of Sale) locations in the United States is likely to be a key factor driving activity in the online fraud space.

Juniper discovered that the greater security afforded by CHIP and PIN would persuade fraudsters to switch their attention from the in-store environment to the CNP (Card Not Present) space.

The study further showed that eRetail would be particularly susceptible to online fraud, with the value of fraud in this sector increasing at twice that of banking and seven times that of airline ticketing adding that the research highlighted two key areas for fraud within eRetail such as ‘buy-online’ pay in-store’ and Electronic gift cards.