E-commerce fraud is a growing problem for businesses of all sizes. As the number of online transactions continues to rise, so does the risk of fraud. In this article, we’ll take a look at the latest e-commerce fraud statistics and discuss what businesses can do to protect themselves from fraudsters.
We’ll also explore the most common types of e-commerce fraud and how businesses can detect and prevent them. Finally, we’ll discuss the importance of staying up-to-date on the latest e-commerce fraud trends and strategies. By the end of this article, you’ll have a better understanding of the e-commerce fraud landscape and how to protect your business from it.
E-Commerce Fraud: The Most Important Statistics
In 2020, 84% of e-commerce fraud costs were from domestic transactions, while in 2021, 71% of fraud costs were from domestic transactions and 29% from international transactions.
36% of e-commerce fraud management spending went to manual order review, 34% to internal tools and systems, and 30% to third-party tools and services.
E-Commerce Fraud: Statistics Overview
E-commerce merchants in the United States reported an average of more than 800 fraud attacks per month in 2021, which is more than double the figure from the previous year, yet the number of successful attempts only saw a marginal increase.
It demonstrates the need for merchants to remain vigilant and take proactive measures to protect their businesses from fraud. It also highlights the need for merchants to invest in more sophisticated fraud prevention technologies to detect and prevent fraudulent activity.
In the UK, online shopping and auction frauds increased by 37% between the first half of 2019 and the first half of 2020, with 62,868 consumer frauds reported in total.
This shows the prevalence of online shopping and auction frauds, which can have a significant impact on businesses and consumers. It also highlights the need for businesses to be aware of the risks associated with online shopping and auction frauds and to take steps to protect themselves and their customers.
Mobile devices saw an increase in the share of fraud costs attributed to them in 2021.
Merchants should be aware of the potential for fraud when it comes to mobile devices.
This is especially true since all channels outside of the online channel also saw an increase in the share of fraud costs attributed to it. This means that merchants should take extra precautions to protect their customers and their businesses from fraud.
In 2020, 84% of e-commerce fraud costs were from domestic transactions, while in 2021, 71% of fraud costs were from domestic transactions and 29% from international transactions.
International fraud is becoming a larger problem for e-commerce merchants. This means that merchants need to be more vigilant in monitoring their transactions and implementing security measures to protect themselves from international fraud.
Nearly 40% of online merchants experienced friendly fraud in 2021, with card testing and phishing being the only other fraud methods affecting more than 30% of surveyed e-merchants.
This highlights the prevalence of friendly fraud and other types of fraud in the e-commerce space. It also provides insight into the types of fraud that merchants need to be aware of and take steps to protect against.
This information can help merchants better understand the risks they face and take the necessary steps to protect their businesses.
Synthetic identity fraud is the most costly form of e-commerce fraud in the US, accounting for 30% of losses in 2021.
The need for merchants to invest in more sophisticated fraud prevention measures to protect their businesses is high.
The FDP market was estimated to be worth 19.5 billion US dollars in 2017 and is projected to exceed 63 billion US dollars in 2023.
This statistic is important in the context of e-commerce fraud statistics because it shows the increasing need for fraud detection and prevention methods to protect businesses and consumers from fraudulent activities such as identity theft, insurance claims, and money laundering.
36% of e-commerce fraud management spending went to manual order review, 34% to internal tools and systems, and 30% to third-party tools and services.
This data provides insight into how merchants are allocating their resources to combat e-commerce fraud. By understanding how merchants are spending their money on fraud prevention, control, and resolution, businesses can make more informed decisions about their own fraud management strategies.
The cost of online fraud in the US has risen 15% from 3.13 to 3.60 dollars in 2021 due to the COVID-19 pandemic.
This statistic is significant because it highlights the increased risk of e-commerce fraud during the pandemic.
It is important for retailers and e-commerce merchants to be aware of the increased risk and take the necessary steps to protect their businesses from fraud.
The cost of online fraud in Canada increased by 5% in 2021, costing merchants an estimated 3.02 U.S. dollars for every dollar of fraud.
This shows the increasing cost of e-commerce fraud in Canada, which can have a significant impact on the bottom line of retailers and e-commerce merchants. This statistic also serves as a reminder to merchants to invest in fraud prevention measures to protect their businesses from losses due to fraud.
Conclusion
In conclusion, e-commerce fraud is a growing problem that needs to be addressed. Businesses need to be aware of the risks and take steps to protect themselves. By understanding the statistics and trends, businesses can better prepare themselves to prevent and detect fraud.
Additionally, businesses should consider implementing fraud prevention tools such as fraud detection software, customer authentication, and data encryption to reduce their risk of becoming a victim of fraud.
References
1 - https://www.statista.com/statistics/1296971/average-monthly-fraud-attacks-online-merchants-us/
2 - https://www.statista.com/statistics/1182221/online-shopping-fraud-incidents-uk/
3 - https://www.statista.com/statistics/1297038/fraud-costs-online-merchants-us-channel/
4 - https://www.statista.com/statistics/1297063/share-fraud-costs-online-merchants-us-transaction-origin/
5 - https://www.statista.com/statistics/1297428/leading-fraud-attacks-online-merchants-worldwide/
6 - https://www.statista.com/statistics/1297173/fraud-losses-online-merchants-us-type/
7 - https://www.statista.com/statistics/786778/worldwide-fraud-detection-and-prevention-market-size/
8 - https://www.statista.com/statistics/1296425/ecommerce-fraud-management-spending-worldwide/
9 - https://www.statista.com/statistics/735803/total-costs-of-fraud-losses-per-dollar-lost-in-the-us/
10 - https://www.statista.com/statistics/1294426/fraud-cost-online-retailers-canada/
ZipDo, cited June 2023: E Commerce Fraud Statistics
