Report: Online payment fraud detection spend to hit $9.3B by 2022
Spending on online fraud detection and prevention products will hit $9.3 billion by 2022, an increase of 22 percent over this year's anticipated spend, according to a new Juniper Research study.
The research reveals perceptions of high software costs, alongside relatively low awareness of effective solutions in the e-commerce space, are slowing service uptake, according to a press release. Nevertheless, it predicts several factors would prove instrumental in driving the market forward.
Juniper's new research, Online Payment Fraud: Emerging Threats, Key Vertical Strategies & Market Forecasts 2017-2022, found that the growing threat of insecure IoT devices will be key in driving fraud detection and prevention spend. It cited the evolution of IoT botnets from DDoS weapons aimed at fraud automation tools as influencing this trend, owing to a requirement for better customer verification tools, according to the release.
Meanwhile, Juniper predicts the launch of 3DS 2.0 (3-D Secure 2.0) would have a similar impact. It claims 3DS 2.0 would both reduce fraud and result in fewer basket abandonments, if merchants invested in authentication solutions as part of an fraud detection and prevention strategy.
Finally, it cites the upcoming PSD2 (revised payment services directive) and the move to open banking APIs in Europe, North America and Asia as a further driver.
"APIs expose a set of business logic rules, which by their nature are susceptible to abuse" stated research author Steffen Sorrell in the release. "This will drive banks and service providers to greater emphasis on protecting those APIs."