Online payment fraud detection spend to jump 30 per cent

As businesses turn towards online payment services, and as the adoption of such services grows, fraudsters are seeing it as an opportunity to make some easy money, especially in the mobile payment world. After all, security levels of mobile payment systems are not as good as those of desktop payment systems, right?

Right.

That's exactly why investing heavily in online payment security systems is seen as the biggest driver of revenue for the mid-term, experts from Juniper Research said.

Researchers said eCommerce merchants and financial institutions will invest 'heavily' over the next five years, reaching $9.2 billion by 2020. That's a 30 per cent increase compared to what we have today.

“Digital security companies regard the mitigation of mobile fraud as a key revenue generator in the medium term,” says report author Gareth Owen.

According to Juniper's research, entitled ‘Online Payment Fraud: Key Vertical Strategies and Management 2016-2020’, leading solution vendors are able to reduce fraud levels down to 0.1 per cent of transaction values in 'some key eCommerce verticals'.

A whitepaper following the annoucement, entitled 'Managing the Risk of Fraud' has also been released, and can be found on this link.

Mobile payment has seen some incredible growth lately, in the UK but in the rest of the world, as well. In the UK, Apple Pay has recently been introduced, and the limit on mobile and contactless payment has been increased to £30, further reducing waiting lines and increasing value.

With more secure services, we’re that much closer to a cashless society.

Image Credit: Shutterstock / gpointstudio