Rising Fraud in eCommerce

Criminal attacks on online retailers have increased dramatically since the COVID era. AI technologies are becoming highly scalable to empower fraudsters to heavily automate their sophisticated attacks and overwhelm rules-based prevention systems.

Signifiyd's "State of Fraud and Abuse 2024" study indicated that efforts to place fraudulent orders climbed 19% in the first half of 2024 compared to the previous year.

Recent report posted by Juniper Research, a Hampshire, UK-based consultancy predicts the value of e-commerce fraud to rise from $44.3 billion in 2024 to $107 billion in 2029 – a 141% increase. According to the author Thomas Wilson's statement, “eCommerce merchants must seek to integrate fraud prevention systems that offer AI capabilities to quickly identify emerging tactics. 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.”

Merchants are advised to incorporate the AI technologies to recognize emerging fraud patterns and react in real-time, to maximize revenue and customer experience.

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