Report: Card-Not-Present Fraud to Grow Over Next Five Years

A new study from Juniper Research has found that card-not-present (CNP) fraud is set to result in $130 billion in losses between 2018 and 2023. According to the report, eCommerce merchants are primarily focused on assessing fraud risk at the point of transaction, leaving vulnerabilities in fraud detection and prevention.

Cybercriminals are also looking to exploit more complex approaches to committing fraud, seeking to “monetize their knowledge to a wider, less tech-savvy audience,” by making complex cross-channel fraud “the new normal,” according to a press release.

The projected losses from CNP in the new report is a marked increase from past assessments. According to Retail Dive, Juniper predicted $71 billion in CNP fraud by 2022 in a report released last year.

The report found that payments technology companies will drive fraud prevention and detection investment. Digital payment players, the report said, will spend nearly $10 billion on advanced fraud prevention and detection measures by 2023. The bulk of the growth over the forecast period will likely be driven by financial institutions and payment service providers, the press release said, as they have an acute awareness and business incentive to maximize payments security.

“A layered FDP solution naturally helps directly preventing fraud, but it also offers major gains in terms of recovering potentially lost revenue through false positives. This is something about which retailers remain undereducated, and has allowed fraudsters to capitalize on relatively low FDP spend,” explained research author Steffen Sorrell.

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