Online Fraud Expected to Reach $107 Billion by 2029

A new study by Juniper Research predicts that online eCommerce fraud will surge from $44 billion in 2024 to $107 billion by 2029, marking a 141% increase fueled by advancements in artificial intelligence (AI). AI is enhancing the sophistication of fraud attacks, particularly through the use of deepfakes that can bypass verification systems, alongside a rise in 'friendly fraud' where customers themselves commit fraud. The report emphasizes the necessity for eCommerce merchants to integrate AI-driven fraud prevention systems to effectively identify and counter emerging threats. Thomas Wilson, the report's author, highlighted the risks in developed markets where larger merchants are particularly vulnerable to fraud attempts involving stolen credit cards. Recommendations include incorporating biometric identification techniques to bolster security against increasingly complex fraud methods. As fraudsters leverage AI to automate and scale their attacks, merchants must adapt quickly to protect their businesses and customers.