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Fraud and Security in Global Online Payments 2019

Fraud and Security in Global Online Payments 2019

Double-digit growth rates predicted for online payment fraud losses worldwide

The rising costs of online payment fraud
The level of online payment fraud is on the rise worldwide, as more consumers turn to digital shopping channels to make their purchases. According to a projection referenced in the yStats.com report, the global losses from online payment fraud, covering E-Commerce, digital travel and online banking transactions, could double between 2018 and 2023.

Mobile biometrics to help mitigate fraud in E-Commerce
Payment security is a top factor that shoppers pay attention to when buying online, according to recent surveys cited by yStats.com. Furthermore, fear of fraud is one of the top reasons why many Internet users in regions such as the Middle East & Africa prefer not to shop online. E-Commerce sellers, payment providers and financial institutions are thus forced to invest in the newest technologies to mitigate the risk of fraud and attract more online buyers. Mobile biometrics is among the most trending technologies that financial fraud professionals deem most effective in combating online payment fraud.


1. Management Summary
2. Global Developments
Overview of Online Payment Fraud Trends, May 2019
Online Payment Fraud Losses, in USD billion, 2018e & 2023f
Breakdown of Feelings Consumers Have Towards Card Transaction Declines in Online Shopping, in % of Online Shoppers, by Frequency of Online Shopping, July 2018
Breakdown of Most Important Factors in Consumers’ Online Experience, in % of Consumers, 2018
Share of Consumers Who Have More Confidence in a Business That Uses Physical Biometrics for Online Security, in %, 2018
Share of Respondents Who Would be Willing to Use Fingerprint or Other Biometric to Secure Their Payment Details, in %, 2018
Number of Remote Mobile Biometric Transactions, in billions, and Their Share of Total In-Store and Remote Transactions Authenticated via Mobile Biometrics, in %, 2018 & 2023f
Breakdown of The Perceived Level of Security of Blockchain Solutions Compared to Conventional IT Solutions, in % of Senior Executives, March 2019
Top 10 Blockchain Use Cases, in % of Senior Executives, 2018
Spending on Fraud Management Solutions, 2017 & 2023f
3. Asia-Pacific
3.1. Regional
Estimated Card Not Present Fraud Share, in % of Total Card Payment Fraud, 2018
Share of Businesses That Experienced an Increase of Online Fraud Losses Over The Past Year, in %, Compared to Those With The Same Amount of Fraud and Less Fraud, 2018
Breakdown of The Most Important Factors in Consumers’ Online Experience, in % of Consumers, 2018
Top 3 Organization Types Most Trusted by Consumers in Handling Their Personal Data, in % of Consumers, 2018
3.2. China
Internet Security Incidents Encountered by Internet Users, in %, 2018
Types of Online Fraud by Internet Users, in % Internet Users Who Encountered Online Fraud, 2018
Major Concerns Related to Mobile Payments, in % of Mobile Payment Users, 2018
Top Security Issues in Mobile Payments, in % of Mobile Payment Users, 2018
Share of Mobile Payment Users Willing to Use Biometrics for Mobile Payment Authentication, in %, 2018
3.3. Japan
Card Payment Fraud Losses, by Type, in JPY billion, 2014 - 2018
Top Factors Considered When Selecting a Payment Method, in % of Consumers, by Consumers Paying With Cash and Consumers Paying With Non-Cash Payment Methods, June 2018
Reasons for Not Using QR-Based Mobile Payments, in % of Non-Users, January 2019
3.4. South Korea
Breakdown of Perception of The Security of Mobile Payment Methods Compared to Conventional Payment Methods, in %, 2018
Top 3 Preferred Method of Authentication in Mobile Payment Services, in % of Users, 2017 & 2018
3.5. Australia
Card Not Present Fraud, in AUD million, and Share of Total Card Payment Fraud, in %, FY 2017 & FY 2018
Share of Cross-Border E-Commerce Orders Rejected by Merchants Due to Suspected Fraud, in % of Australian Cross-Border E-Commerce Merchants, 2018
3.6. Malaysia
Reasons for Not Shopping Online, in % of Internet Users Who Do Not Shop Online, 2018
Top 3 Barriers to E-Wallet Adoption, in % of Non-Users of E-Wallets, 2018
3.7. Vietnam
Reasons for Not Shopping Online, in % of Internet Users Who Do Not Shop Online, 2018
4. Europe
4.1. Regional
Overview of Strong Customer Authentication Requirements Under PSD2, April 2019
Overview of The Strong Customer Authentication Perceptions by Industry Participants, June 2019
E-Commerce Merchants’ Readiness to Support Strong Customer Authentication, in %, November 2018
Levels of Awareness and Preparation of E-Commerce Merchants to Strong Customer Authentication Requirements, by SMEs and Large Businesses, June 2019
Share of Consumers Who Are Unaware of the Strong Customer Authentication Requirements for Online Purchases, in %, June 2019
Share of Consumers Who Prefer One-time Passcodes for Authentication, Compared to Fingerprint Recognition, in %, June 2019
Barriers to Buying Online, in % of Online Shoppers, July 2018
Attitudes to Security of Online Shopping, incl. Payment-Related, in % of Online Shoppers, by Austria, Germany and the UK, April 2018
4.2. UK
E-Commerce Fraud Loss on UK-Issued Cards, in GBP million, and Share of Total Card Purchase Fraud Loss, in %, 2013 - 2018
Top 10 Reasons for Shopping Cart Abandonment, in % of Online Shoppers, 2018e
Breakdown of Consumers’ Perception of Whether They Currently Undergo Enough Security Checks When Making an Online Payment, in % of Consumers, 2018
Breakdown of the Preferred Way of Receiving a One-time Passcode to Verify a Payment Transaction, in % of Consumers, 2018
Share of Cross-Border E-Commerce Orders Rejected by UK Merchants Due to Suspected Fraud, in % of UK Merchants, 2018
4.3. Germany
Share of E-Commerce Merchants Who Faced Fraud or Fraud Attempts in Their Online Shops, in %, 2018
Perceived Development of Fraud and Fraud Attempts Over the Past Year, in % of E-Commerce Merchants, 2018
Types of Fraud and Fraud Attempts Faced by E-Commerce Merchants in Their Online Stores, in % of E-Commerce Merchants, 2018
Measures Taken by E-Commerce Merchants to Prevent Fraud in Their Online Stores, in % of E-Commerce Merchants, 2018
Breakdown of Usage of 3D Secure for Credit Card Payments, in % of E-Commerce Sellers, 2017 - 2019
Breakdown of the Perceived Change in Shopping Cart Abandonment Rates After Choosing Credit Card Payment as a Result of 3D Secure, in % of E-Commerce Sellers Using 3D Secure, 2019
Breakdown of Importance of Payment Topics in Merchants’ Payment Strategy Until 2020, in % of E-Commerce Merchants, 2018
Breakdown of Attitude to Paying by Invoice, in % of Online Shoppers, April 2018
Most Trusted Mobile Payment Providers, in % of Consumers, August 2018
4.4. France
Top 5 Services and Obligations of E-Commerce Merchants in 2019 According to Online Shoppers, in % of Online Shoppers, December 2018
Preferred Biometric Authentication Methods in E-Commerce, in % of Online Shoppers, 2019
Breakdown of Main Barriers That Make Consumers Hesitant to Purchase Online, in %, by Total Population and Online Shoppers, June 2018
Share of 3D Secure Payments, in % of Online Card Payments, April 2011 – April 2018
Breakdown of Attitudes Towards Mobile Payments, in % of Internet Users, February 2018
4.5. Spain
Breakdown of Factors Most Important in Online Payment Methods, in % of Online Shoppers, October 2018
4.6. Italy
Fraudulent Transactions’ Share of E-Commerce Sales, in %, 2017
4.7. Austria
Share of Online Shoppers Who Fell Victim to Internet Fraud, in %, and Type of Fraud Experienced, in %, November 2018
Factors Taken into Account by Online Shoppers in Order to Avoid Fraud, in % of Online Shoppers, November 2018
Share of Online Shoppers Who Experienced Internet Fraud, in %, and Type of Fraud Experienced, in %, December 2018
4.8. Switzerland
Share of E-Commerce Merchants Who Faced Fraud or Fraud Attempts in Their Online Shops, in %, 2018
Perceived Development of Fraud and Fraud Attempts Over the Past Year, in % of E-Commerce Merchants, 2018
Types of Fraud and Fraud Attempts Faced by E-Commerce Merchants in Their Online Stores, in % of E-Commerce Merchants, 2018
Measures Taken by E-Commerce Merchants to Prevent Fraud in Their Online Stores, in % of E-Commerce Merchants, 2018
5. North America
5.1. USA
Card Not Present Fraud Losses, in USD billion, 2015 - 2021f
Fraud Losses, by Fraud Type, in USD billion, 2017 & 2018
Synthetic Credit Card Fraud, in USD million, 2015 - 2020f
Cost of Fraud as Share of Revenues, in %, 2014-2018
Total Costs per Dollar of Fraud Losses for Retail Merchants, in USD, 2017 & 2018
Total Costs per Dollar of Fraud Losses for M-Commerce Merchants Selling Digital Goods, in USD, 2017 & 2018
Share of Cross-Border E-Commerce Orders Rejected by Merchants Due to Suspected Fraud, in % of USA Merchants, 2018
Attitudes to Security of Online Shopping, incl. Payment-Related, in % of Online Shoppers, April 2018
Actions That Online Shoppers Plan to Take to Protect Themselves from Identity Theft Online During Holiday Online Shopping, in % of Online Shoppers, 2018
Card Payment Fraud Penetration, in % of Consumers, by Card Present and Card Not Present Fraud, 2013-2018
Account Takeover Fraud Types, in % of Account Takeover Victims, 2018
Fraudulent New Accounts Opened, in % of New Account Fraud Victims, 2017 & 2018
Breakdown of Primary Factors That Would Prevent Internet Users From Using a Mobile Payment App, in %, March 2018
Share of Consumers Who Are Worried About Their Personal Information When Using a Mobile Payment App, in %, 2015 - 2018
Share of Adults Who Have Made a Biometric Payment, in %, by Gender and Total, March 2018
Share of Adults Who Believe that Biometric Payment Will Become More Commonplace in the Next 2-5 Years, in %, March 2018
Breakdown of Perceived Effectiveness of Emerging Technologies for Mitigating Financial Crime, in % of Professionals, September 2018
5.2. Canada
Most Trusted Payment Methods, in % of Internet Users, April 2019
Breakdown of Payment Methods Perceived as the Safest for Online Purchases, in % of Consumers, 2016-2018
Attitudes to Security of Online Shopping, incl. Payment-Related, in % of Online Shoppers, April 2018
Share of Mobile Wallet Users Who Trust That Mobile Wallet Payment Transactions are Secure, in %, 2016-2018
6. Latin America
6.1. Regional
Perceived Barriers to Paying via a Mobile App In-Store, in % of Banked Internet Users Who Have Not Used Mobile Payment Apps to Pay In-Store, by Selected Countries, 2018
Top Motivations to Start Using Mobile Payments Apps/Wallets In-Store, in % of Banked Internet Users Who Have Not Used and Do Not Intend to Use Mobile Payment Apps In-Store Next Year, by Selected Countries, 2018
6.2. Brazil
Top 10 Factors Considered When Making an Online Purchase Decision, incl. Payment-Related, in % of Online Shoppers, May 2018
6.3. Mexico
Authorization Rate of Payment Transactions on E-Commerce Websites, in % of Transactions and in % of Transaction Value, by Credit Cards and Debit Cards, Q1 2016 – Q1 2019
Chargeback Rate, in % of Number of Authorized Payment Transactions on E-Commerce Websites and in % of Their Value, by Credit Cards and Debit Cards, Q1 2016 – Q1 2019
Share of Online Shoppers Who Stored Information With an Online Merchant and Type of Information Stored with an Online Merchant, in % of Online Shoppers, 2018
Reasons for Not Storing Personal Information With Online Merchants, in % of Online Shoppers Who Do Not Store Personal Information With Online Merchants, 2018
6.4. Colombia
Payment-Related Aspects Considered When Shopping Online, in % of Online Shoppers, May 2018
7. Middle East & Africa
7.1. Regional
Reasons for Preferring Cash on Delivery, in % of Online Shoppers, 2018
7.2. UAE
Top 5 Drivers for Paying by Cash on Delivery in E-Commerce, in % of Respondents, February 2018
7.3. South Africa
Breakdown of Barriers to E-Commerce, incl. Payment-Related, in % of Internet Users Who Do Not Shop Online, August 2018
Breakdown of Factors That Would Encourage to Shop Online More, incl. Payment-Related, in % of Online Shoppers, August 2018
7.4. Morocco
Barriers to Shopping Online, incl. Payment-Related, in % of Internet Users, March 2018
Problems Encountered When Shopping Online, incl. Payment-Related, in % of Online Shoppers, March 2018

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