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Online payment fraud losses will exceed $206 billion over the next few years and the majority of these frauds will be driven by identity theft.
Research revealed that merchant losses due to online payment fraud are all set to increase between 2021 and 2025. The report further stated that identity theft will be responsible for the majority of these frauds. Analysts are predicting that these losses will surpass $206 billion in the next five years.
The big numbers on the report call for more robust measures to fight identity theft and related frauds. It is suggested that merchants employ AI-driven fraud prevention systems for accuracy, speed, compliance, and data protection under one roof. In addition to this, businesses have been advised to prioritise the use of technology to combat criminal activities.
Apart from this, the report also states that the pandemic is also responsible for the skyrocketing ID fraud statistics. Furthermore, synthetic identity fraud and account takeover fraud are two of the biggest threats this year. Payment fraud detection vendors have been guided to focus on machine learning algorithms to boost identification of fraudulent transactions.
“Given the large amounts of online payment transactions globally, it is essential that this transactional data is leveraged to continually detect fraudulent transactions,” according to the co-author of the report, Nick Maynard.
As per Shufti Pro’s findings, perpetrators have become strategically stronger. With advanced technology, they have come up with several new ways to commit fraud. To combat these criminal activities, we suggest AI-driven systems like identity verification, ongoing KYC, biometric authentication and NFC verification.
Suggested: Global Identity Fraud Report 2020