Spend on online FDP (fraud detection and prevention) solutions is set to rise to US $9.3 billion by 2022, an increase of 22% over this year’s anticipated spend, driven by IoT and 3D_Secure.
Fraud detection and prevention is growing thanks to identity theft and cyber crime, and the spend to prevent it is going to get a lot higher before it ever goes lower.
The news is thanks to new research from Juniper which “found that perceptions of high software costs alongside relatively low awareness of effective solutions in the eCommerce space were slowing service uptake. Nevertheless, it predicted that several factors would prove instrumental in driving the market forward.”
Juniper’s new research is dubbed “Online Payment Fraud: Emerging Threats, Key Vertical Strategies & Market Forecasts 2017-2022,]” and as always, is on sale to relevant parties at relevant parties.
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The research “found that the growing threat of insecure IoT (Internet of Things) devices would be key in driving FDP spend. It cited the evolution of IoT botnets from DDoS (Distributed Denial-of-Service) weapons aimed at fraud automation tools as influencing this trend, owing to a requirement for better customer verification tools.”
Meanwhile, Juniper predicted the launch of 3DS 2.0 (3-D Secure 2.0) would have a similar impact.
It claimed that “3DS 2.0 would both reduce fraud and result in fewer basket abandonments, if merchants invested in authentication solutions as part of an FDP strategy.”
Finally, Juniper cited “the upcoming PSD2 (revised payment services directive) and the move to open banking APIs in Europe, North America and Asia as a further driver.”
Research author Steffen Sorrell noted: “APIs expose a set of business logic rules, which by their nature are susceptible to abuse. This will drive banks and service providers to greater emphasis on protecting those APIs.”
Warning: Emerging Markets Remain Vulnerable
Juniper has predicted that “emerging markets, such as Latin America, Indian Subcontinent and Africa & Middle East would become key targets for banking and payments fraud.”
Collectively, we are told that “these regions will account for only 4% of global FDP spend in 2022. The research noted that stronger regulation to protect consumers as well as better consumer education in safer online practices were key issues to address.”
As per usual, there is a whitepaper to further tempt those relevant parties to purchase the full report, and it is dubbed “Future Fraud: 3 Key Battlegrounds in 2018.”