Online Fraud, the Billion-Dollar Industry

By June 8, 2016Security Tech
online fraud

The Gist

Due to the upped security measures made by the card switch over to chip and PIN, now online fraud growth is doubling to reach a staggering $25 billion by 2020.


 

We’ve all heard the saying, “when one goes up another must come down.” Well in the world of fraud, when one goes down another one goes up, WAY up. I’m talking about the recent reports conducted by Juniper Research stating, “Global online fraud is set to top $25 billion by 2020.” The culprit? Apparently as in person payment fraud transactions go down due to the security measures made by the new chip and pin method, online fraud is going up.

With the recent active implementation of the Chip and Pin, cyber criminals have had a major stumbling block with their recent boost in security measures. With a one-time code, it has become ten times more difficult for even the top scammers to clone private information. This is the main reason that now scammers are switching their main target to online merchants rather than POS systems.

Here are the top three areas of Fraud Growth before 2020.

  • E- commerce – (65%, $16.6 billion)
  • Banking – (27% – $6.9 billion)
  • Airline ticketing – (6% – $1.5 billion)

With the popularity of online shopping these days, its no wonder that online retail fraud is leading in global fraudulent activity. These numbers will only continue to increase as reports conclude that “although banks are able to counter online banking fraud by deploying new technologies such as 3-D Secure and device finger printing,” these current counter measures made by banks are only temporary fixes before finding a way to defraud once again. Yikes!

The first step to lowering online fraud is to not fall for it. That’s why at Affant we make sure to cover all the bases of security with our 24/7 IT Support, so that you know what’s out there and more importantly what to do to avoid it.