The value of ecommerce fraud is projected to increase threefold over the next five years, largely influenced by advancements in AI.
A study conducted by Juniper Research estimates that losses due to online fraud will grow from $44 billion in 2024 to $107 billion by 2029, representing a 141% increase. The report, titled "Global Merchant Fraud Prevention Market 2024-2029," highlights how AI is making attacks on the ecommerce landscape more complex. Notably, the use of deepfakes to bypass verification systems is identified as a significant threat.
AI not only enhances the quality of attacks but also allows them to be executed on a larger scale and at an accelerated pace.
As a result, Juniper emphasizes the urgent need for ecommerce merchants to adopt AI-powered fraud prevention systems that can swiftly detect new tactics employed by fraudsters. Thomas Wilson, the report’s author, noted that this is particularly crucial in developed markets, where larger merchants face a heightened risk of fraud, including the testing of stolen credit cards.
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