Fraud and Security in Global Online Payments 2022

Fraud and Security in Global Online Payments 2022

Among the top important factors during the online experience among consumers globally, the leading one was “security”, as of September 2021: new yStats.com report.

Mobile app became the most targeted device for online banking fraud commitments globally in Q2 2021

As the use of mobile phones for online activities such as purchases, payments, or banking increased, fraudsters began to target these devices as well. In particular, the share of fraudulent digital banking transactions globally conducted via mobile apps grew steadily over the last couple of years; the overall share of fraud committed via mobile devices was estimated to be more than 50% in the second quarter of 2021. In China, the most common mobile payment security problem in 2020 was personal information leakage. In France, nearly 80% of adults fear becoming victims of online mobile payment fraud, according to an October 2021 survey.

B2C E-Commerce losses from digital payment fraud worldwide were expected to exceed 20 billion US dollars in 2021

While E-Commerce is growing tremendously worldwide, fraud is also on the rise, especially since the COVID-19 pandemic in 2020. This is because consumers around the world are switching heavily to online shopping. Thus, between 2020 and 2021, B2C E-Commerce losses from online payment fraud globally were expected to increase by 18% from the previous year and exceed 20 billion US dollars in 2021. Moreover, large-scale fraud activity was observed in the European region, namely, in the DACH region (Germany, Austria, and Switzerland). For example, more than 90% of online stores experienced frauds or fraud attempts in the last 12 months, as of March 2021.

Security” was the most critical factor that consumers around the world considered when online in 2021

Consumer behavior and preferences around the world have changed dramatically over the past couple of years, and that change includes security. For example, more than 80% of consumers around the world consider ""security"" to be an important factor in their online experience, according to a September 2021 survey. In Japan, “security” was the 2nd top factor needed for entirely cashless payments, chosen by over a third of surveyed Japanese respondents in August 2021. Thus, consumers are increasingly choosing to protect their experience through authentication, such as using facial recognition when making online payments, which is projected to grow at about 16% CAGR from 2020 to 2025 globally.