The Paypers’ Fraud Prevention in Ecommerce Report 2023–2024
The Paypers’ 2023–2024 edition of the Fraud Prevention in Ecommerce Report continues the in-depth market research in the complex and ever-evolving fraud ecosystem, helping merchants and businesses understand the main weak points of online commerce and gaining knowledge on how to efficiently fight fraud.
What you will learn by downloading the report
Key trends in ecommerce fraud in 2024
Chargeback and friendly fraud remain the most pressing challenges merchants face. At the same time, as GenAI technology evolves, scammers and fraudsters find new ways to trick companies and end customers, causing more financial damage than ever. By using LLMs (Language Learning Models) that comprehend and generate human language text, scammers can now extend their victim pool, which saw a surge in romantic scams globally, in 2023.
At the same time, merchants and PSPs must tackle different types of fraud while remaining compliant with international regulations and creating a frictionless experience for the end-user.
Fraud prevention strategies and solutions
Fraud detection should happen in real time to ensure the right intervention and prevention. Using a customisable blend of AI, machine learning, and human resources is the key, even with the risk of adding extra layers of security and, thus, generating friction.
Moreover, with the holiday season rushing upon us, experts in the field share valuable tips and tricks to help you safely pass by this shopping season and shop ’til you drop (your credit card).
Latest updates on technology to help the industry detect and prevent fraud
Having better access to network intelligence enabling effective profiling of data, modern fraud prevention solutions can accurately determine the digital identity of consumers without breaching data protection regulations. To do this seamlessly, fraud orchestration must be scalable and flexible, deploying the right tools to establish digital identities and build a trustworthy and frictionless user experience. At the same time, systems leveraging the power of machine learning and AI help the industry stay on top of constantly evolving threats while those who want to effectively combat fraud must turn to behavioural biometric analytics and pre-checkout profiling.
Standards and compliance
The implementation of 3D-Secure has helped merchants easily authenticate consumers but should be used together with the right fraud solution to provide the best chance of approval. Implemented incorrectly, 3D-Secure can facilitate cart abandonment because it creates extra layers of friction for the end user.
Consistently, the latest proposal of the European Commission aims to revise its Payment Service Directive. PSD3 will focus on the licensing and authorisation of payment and e-money institutes, reducing friction. It will also incorporate open finance principles to securely share data and optimise SCA, ultimately providing a more efficient way to fight fraudsters and scammers.
The main topics covered in this report prove their relevance not only in understanding the complexity and the scale of the global fraud phenomenon, but also in creating new, successful strategies that customers, merchants, and solution providers can implement to deter. Explore The Paypers’ Fraud Prevention in Ecommerce Report 2023–2024 and learn more about how to effectively deter fraud!
Enjoy your reading!
