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BizReport : Internet : May 03, 2016

eRetail, banking and airline ticketing earmarked as hot areas for online fraud

Hot off the press from Juniper Research comes the forecast that fraudulent online transactions are set to reach $25.6 billion by 2020, up from $10.7 billion last year.

by Helen Leggatt

According to Juniper Research's report, 'Online Payment Fraud: Key Vertical Strategies & Management 2016-2020', $4 out of every $1,000 in online payments will be fraudulent by 2020.

Juniper identified three "hot" areas for online fraud:

- eRetail (65% of fraud by value in 2020 - $16.6 billion)
- Banking (27% of fraud by value in 2020 - $6.9 billion)
- Airline ticketing (6% of fraud by value - $1.5 billion)

With eRetail, two key areas for fraud are "buy online, pay in-store" and electronic gift cards. In banking, while banks are better able to use new technologies to counter fraud, Juniper believes these measures "often only provide temporary respite as fraudsters quickly find new ways to defraud". The same is true of airlines that, while having introduced new technologies to thwart fraudsters attacking eTicketing, are seeing those fraudsters quickly move on to target other targets such as frequently flyer fraud.

Also driving increases in fraudulent online transactions is the implementation of CHIP and PIN at point of sale locations. "Security afforded by CHIP and PIN would persuade fraudsters to switch their attention from the in-store environment to the CNP (Card Not Present) space," says Juniper.

Tags: airline industry, banking, eRetail, fraud, online payments, research

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