Juniper Research highlights huge digital CNP fraud problem

Retailers are set to lose $130 billion in digital CNP (Card-not-Present) fraud between 2018 and 2023, according to Juniper Research.

As cybercriminals seek to monetise their knowledge to a wider, less tech-savvy audience, complex cross channel fraud will become the ‘new normal’, with retailers ill-prepared to fight it, the company warns.

“A layered FDP solution naturally helps directly preventing fraud, but it also offers major gains in terms of recovering potentially lost revenue through false positives. This is something about which retailers remain undereducated, and has allowed fraudsters to capitalise on relatively low FDP spend,” says Juniper Research’s Steffen Sorrell.

Digital payment players will spend $9.6 billion annually on FDP solutions in 2023, although the bulk of growth is likely to be driven by financial institutions and payment service providers. This is due to awareness of the benefits, as well as a requirement to deal with challenges such as Open Banking systems and instant payment mechanisms.