Jan. 2, 2019
Juniper Research estimates retailers will lose $130 billion in "card not present" fraud in the next five years, according to a report issued by the firm.
The report, completed late last year, predicts retailers will lose the $130 billion from 2018 through 2023, noting retailers are lagging in their ability to detect potential fraud before it actually happens. The report stated online merchants seem to be focused mainly at detecting fraud at the point of sale, and don't have enough insight prior to that.
"A layered FDP [fraud detection & prevention] solution naturally helps directly preventing fraud, but it also offers major gains in terms of recovering potentially lost revenue through false positives," said research author Steffen Sorrell, in an release on the report. "This is something about which retailers remain under educated, and has allowed fraudsters to capitalize on relatively low FDP spend."
Juniper predicts digital payment firms will pay $9.6 billion a year on FDP players in 2023, however the main growth over the forecast period will come from financial institutions and payment service providers, according to the release.
Companies: Juniper Research
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