Financial institutions and e-commerce companies will spend $9.2bn on online fraud detection, according to a study carried out by Juniper Research.
A research paper titled ‘Online Payment Fraud: Key Vertical Strategies and Management 2016-2020’ revealed that top service providers were in a position to cut levels of fraud to less than 0.1 per cent of transactional values in certain major e-commerce sectors.
The research also highlighted areas that criminals see as particularly vulnerable, such as mobile payment channels. This is because many firms have yet to apply the same level of protection to mobile as they have to transactions carried out on the desktop.
Report author Gareth Owen said the mitigation of mobile fraud was driving development and implementation of of biometrics to make mobile purchases more secure.