The value of ecommerce fraud is set to rise threefold in the next five years, thanks to the impact of AI.
A study from Juniper Research found that the money lost to online fraud will rise from $44bn in 2024 to $107bn in 2029, an increase of 141%.
The research, Global Merchant Fraud Prevention Market 2024-2029, cites the role of AI in making attacks on the ecommerce ecosystem more sophisticated. In particular, the report credits the use of deepfakes to defeat verificatio systems as "a key threat".
AI is also enabling higher quality attacks on a greater scale and at a faster rate.
Consequently, Juniper is calling for ecommerce merchants to integrate fraud prevention systems with AI capabilities to quickly identify emerging tactics from fraudsters.
"This will prove especially important in developed markets, where larger merchants are at higher risk of being targeted for fraud, such as testing stolen credit cards," said report author Thomas Wilson.