Online Fraud Detection Spend To Surge
Online fraud detection spend is set to surge in the coming years, with fraudsters targeting mobile transactions, a new Juniper Research study has found.
The study has found that eCommerce merchants and financial institutions will invest heavily in online fraud detection solutions over the next five years, with annual spending reaching US$9.2 billion by 2020, up by 30 per cent on current levels.
Juniper found that fraudsters “now perceive mobile payment channels to be particularly vulnerable”, noting that “many organisations have yet to apply the same levels of protection to mobile as they have to desktop transactions”.
“Digital security companies regard the mitigation of mobile fraud as a key revenue generator in the medium term,” report author Gareth Owen commented, arguing that this is driving the development and implementation of advanced biometric authentication technologies.
In a survey of fraud detection solutions, the study found “the leading solution vendors were now capable of reducing fraud levels down to less than 0.1 per cent of transaction values in some key eCommerce verticals”.
Juniper conducted a comparative assessment of 12 solution vendors based on criteria including technological innovation, fraud detection performance, product range and strength of partnerships, identifying CyberSource, Experian and FICO as the three leading players in the fraud detection and prevention space.