Losses caused by online payment fraud aren’t expected to stop. Currently, they’re even greater than what you could find some years ago. The growth in fraud is driven by a continued epidemic of data breaches. If you want to learn what Juniper Research forecasts concerning online fraud and where you can get the best protection from payment fraud, just go on reading this post.
Global Rise of Online Payment Fraud
Instant payment schemes are rising all over the world. On the other hand, there’s a focus on transactions rather than behavioral risks. This is why money transfer is becoming more vulnerable, and fraud losses are growing all around the globe.
So, online payment fraud associated with eCommerce, airline ticketing, money transfer, as well as banking services is on the rise and will continue to be so. This can be explained by the fact that since cybercriminals are working on monetizing their knowledge to a larger audience that’s not enough tech savvy, complex cross‑channel fraud is turning into the “new normal,” and retailers lack enough preparation against fraud.
Of course, these losses are fueled by the never-ending data breaches as a result of which so much personal info is being stolen. According to Juniper Research, fraudsters take advantage of the info obtained “thanks to” these breaches to stay away from pure identity theft. Instead, they’re making use of fragments of real data to create new, synthetic identities.
Steffen Sorrell, who’s the author of the mentioned research, notes that synthetic identity is now the low-hanging fruit. The reason is that even though fraudsters are spending some time on establishing, many of their targets aren’t set up to track down the behavioral giveaways pointing to such fraud. In fact, synthetic fraud is the fastest-growing type of identity fraud in the US.
Online Fraud: How to Protect Your Business
Overall, Juniper says that fraud is turning into a phenomenon that’s rather challenging. Criminals are more and more often focusing on multi-channel strategies, such as a malware combination and other cross-channel types. On the other hand, “fraud-as-a-service” is emerging in the space.
To get enough protection from online payment fraud, you should focus on an omnichannel approach to fraud prevention. For this, just turn to a reliable and experienced payment processor and merchant funding provider like eMerchantBroker.com. The Better Business Bureau considers EMB an A+ processor. Besides, Card Payment Options classifies EMB as an A company.
eMerchantBroker.com has developed unmatched fraud protection and prevention solutions for merchants of any type. So, with EMB, you can be sure to get the best protection from online fraud and start growing your business with ease. In addition, eMerchantBroker.com is regarded as the #1 high risk payment processing company in the US, and offers the lowest possible rates and fees to merchants of any type and size.
It’s also important to note that the growth of instant payment mechanisms and mobile P2P money transfer services turn the money transfer space into one of the main targets for fraudsters through social engineering, malware as well as app tampering.
Currently, CNP or card-not-present online payment fraud is one of the basic research topics for Juniper Research. According to the consultancy, retailers shouldn’t expect to stop losing billions to CNP fraud. What’s more, Juniper reports that the loss is even higher as compared to previous years, and this problem is growing with rapid advances.
When it comes to the real-time nature of instant payments, it can’t do without the implementation of real-time fraud protection. If companies decide to start using transfer schemes designed for individual transactions instead of using batch-based transfer schemes, they should be ready to invest in preventing new fraud from happening.
To sum up, you should take the time to find the most reliable fraud prevention services to protect your business since cybercriminals go on honing their craft, and retailers are still among their top “interests.” All the developments in the area of the online payment fraud fuel the underground fraud-as-a-service economy making it mature and grow in complexity.