A new report from Juniper Networks, a provider of AI-driven networks, revealed that businesses in eCommerce, airline ticketing, money transfer, and banking services will lose over US$200 billion to online payment fraud in the next five years. The research report, “Online Payment Fraud: Emerging Threats, Segment Analysis & Market Forecasts 2020-2024”, found that the increasing ubiquity of digital payments provides an ever-increasing attack surface for fraudsters.
According to the study, digital money transfer is a growing area for payment fraud, with losses growing by 130% from 2020 to 2024. Digital money transfer fraud is particularly strong in emerging markets, with payments vulnerable to SIM swapping fraud and synthetic identities, with less robust security measures in place.
Machine Learning to Defend Against Online Frauds
The research also highlighted that machine learning has become a crucial tool in the fraud detection and prevention arsenal as it enables payments industry stakeholders to analyze transaction flows in a holistic way, unlocking hidden insights on fraudulent behaviors. It also stated that the incorporation of machine-learning into fraud detection and prevention software will drive spending forward, reaching US$10 billion in 2024, a 15% increase from 2020.
Research co-author Nick Maynard said, “The rapidly evolving nature of payment fraud and increased sophistication in attack methods requires machine learning adoption at scale, in order to minimize risk. Constant innovation in analytics and data models is increasingly essential to constraining fraudulent behaviors in payments”.
Earlier, in similar research, Juniper revealed that Asia-Pacific (APAC) service providers were concerned over their security infrastructure as they adopted new technologies like distributed clouds, IoT, and 5G. According to the research findings, only 29% were satisfied with their current firewall. Around 65% will upgrade their firewall within the next year. And, 61%t plan to increase spending on firewall products and services in the future.
The findings are based on the responses of IT decision-makers from service providers across APAC. The report also highlighted that increased adoption of new technologies forced service providers to scale up and scale-out their security infrastructure to remain relevant and secure.