A new study from Juniper Research has found that ecommerce merchants and financial institutions will invest almost USD 9.2 bln by 2020 in online fraud detection solutions.
In a survey of fraud detection solutions, the study ‘Online Payment Fraud: Key Vertical Strategies and Management 2016-2020’ found that the leading solution service providers were now capable of reducing fraud levels down to less than 0.1% of transaction values in some key ecommerce verticals.
According to the study, fraudsters now perceive mobile payment channels to be particularly vulnerable as many organisations have yet to apply the same levels of protection to mobile as they have to desktop transactions.
Gareth Owen, the report author, said that digital security companies regard the mitigation of mobile fraud as a key revenue generator in the medium term. He argued that this was driving the development and implementation of advanced biometric authentication technologies which the companies claim can make mobile purchases as secure as any other online transactions.