E-commerce Fraud Protection Statistics


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E-Commerce Fraud Protection Statistics 2023: Facts about E-Commerce Fraud Protection outlines the context of what’s happening in the tech world.

LLCBuddy editorial team did hours of research, collected all important statistics on E-Commerce Fraud Protection, and shared those on this page. Our editorial team proofread these to make the data as accurate as possible. We believe you don’t need to check any other resources on the web for the same. You should get everything here only 🙂

Are you planning to form an LLC? Maybe for educational purposes, business research, or personal curiosity, whatever the reason is – it’s always a good idea to gather more information about tech topics like this.

How much of an impact will E-Commerce Fraud Protection Statistics have on your day-to-day? or the day-to-day of your LLC Business? How much does it matter directly or indirectly? You should get answers to all your questions here.

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Top E-Commerce Fraud Protection Statistics 2023

☰ Use “CTRL+F” to quickly find statistics. There are total 73 E-Commerce Fraud Protection Statistics on this page 🙂

E-Commerce Fraud Protection “Latest” Statistics

  • Given the fact that successful fraud attempts climbed by 52% between 2020 and 2021, it is obvious that you cannot afford to overlook eCommerce fraud.[1]
  • Unsurprisingly, the typical eCommerce retailer spent around 10% of their yearly sales on fraud control in 2021, given that keeping up with them is challenging and expensive.[1]
  • Using machine learning, Riskified rapidly distinguishes between trustworthy and dishonest actors, enabling businesses to accept more purchases with a 100% chargeback guarantee and a seamless user experience.[1]
  • Only 34% of retailers engage in fraud protection and mitigation, according to 42% of enterprises, who claim that it inhibits innovation and development into new digital channels and services.[2]
  • 47% of businesses indicated they had faced fraud in the previous two years.[2]
  • 52% of respondents to the study said they could do a better job securing their card information.[2]
  • According to 54% of respondents, the possibility of fraud discourages people from experimenting with newer technologies, such as mobile wallets.[2]
  • In contrast to the 20% who worry about being killed, 72% are concerned about having their personal or financial information taken, while 67% are concerned about being an identity theft victim.[2]
  • According to the FTC, Americans have already lost $145 million due to fraud using the coronavirus.[2]
  • In the U.S. and the UK, victims of card fraud reported having more than $100 charges made to their cards, while 20% of those incidents included more than $500.[2]
  • 53.1% of the $3.2 million marketplace reports the federal trade commission received in 2019 included 1697934 customer complaints of fraud.[2]
  • Of the reported fraud instances, 39% were carried out by foreign offenders, 38% by internal perpetrators, and 20% by internal and external perpetrators working together.[2]
  • 77% more people stated they would like to purchase at a retailer that didn’t keep their credit card information on file.[2]
  • Compared to businesses without such systems, those with them were able to cut their costs for responding to fraud attacks by 42% and for remedying them by 17%.[2]
  • Consumers confessed that 87% said they would be willing to wait longer for transactions to finish if it meant that their information was better safeguarded.[2]
  • It’s not difficult to see how chargebacks might represent between 40% and 80% of all fraud losses, given that at least 30% of things bought from online businesses are returned.[2]
  • Consumers disagree on who should be held accountable for fraud. In contrast to 51% of U.S. customers, 57% of UK respondents said it was their duty, not the banks, to safeguard themselves against fraud.[2]
  • 59% are spending money on smartphone applications. 32% of investors are in mobile wallets, while 28% are in voice-based devices.[2]
  • Between 40% and 80% of all fraud losses are attributable to credit card fraud, known as “friendly fraud” chargebacks.[2]
  • In fraud research, it was found that 48% of incidents included fresh accounts that had just been open for 24 hours.[2]
  • In a poll of U.S. and UK customers, 80% of respondents stated they had made an online purchase in the previous three months, yet 21% said they were concerned about entering their credit card information each time they made a purchase.[2]
  • Online scammers are predicted to defraud companies of more than $12 billion in 2021 signal sciences 20.19.[2]
  • 59% of those surveyed indicated they rejected fraud as a digital economy component.[2]
  • Google saw a 35% increase in phishing websites on March 2020 using terms connected to the coronavirus.[2]
  • Companies and customers have seen an upsurge in eCommerce fraud, with 20% of fraud victims indicating that the occurrence occurred within the last year.[2]
  • 70% of respondents said their banks need to be able to forecast fraud more precisely.[2]
  • Only 31% of respondents thought the ease of new digital payment methods was an acceptable price for the danger of fraud.[2]
  • Successful monthly fraud attempts rose from 27% for smaller businesses to 48% for mid-sized to big retailers.[2]
  • The U.S. has the highest fraud rate, with 34% of customers reporting that they were most likely to have been fraud victims.[2]
  • A 16.4% increase in CNP fraud is anticipated in 20.21 as a result of more people using contactless credit cards and internet payments.[2]
  • The average number of monthly fraud assaults at U.S. shops increased by 9% year over year.[2]
  • Younger persons reported more fraud cases (33% more than elderly adults (70–79 years old) reported instances (13% more).[2]
  • It is not unexpected to find that global retail eCommerce sales are anticipated to reach $4.9 trillion by 2021, given that 59.5% of the world’s population has access to the internet and that more customers are being motivated by convenience shopping.[2]
  • 70% fewer fraudulent transactions lower their 20% manual review rate to less than 2%.[3]
  • According to the most recent Forrester total economic impact study, Kounts Solutions, for instance, assisted a major retailer in reducing intentional fraud by $4.9 million and friction for an additional $4.1 million in savings.[4]
  • 40% of customers have used these techniques to pressure customer care agents into granting refunds.[4]
  • Between 67% and 99%, more money is spent on fraud by U.S. financial services and lending companies now than it was before the epidemic.[5]
  • Mortgage lending has increased by 23.5% since pre-covid 2019, and bank growth has maintained at a rate of 13% .[5]
  • Customers reported experiencing more fraudulent or questionable activity online than via mobile spam calls, according to 54% of consumers.[6]
  • Tech Republic claims that as compared to 2019, the number of account takeover attempts grew by about 30% in 2020.[6]
  • By 2020, company chargeback account losses would top $25 billion, and 40% of those who seek chargebacks911 will ultimately do it again.[6]
  • Nearly a third of all American online purchases are made via amazon. Every year, Amazon’s sales climb by 15% to 20%.[6]
  • If the GDPR from Europe applies to your company, one data breach might cost you up to 4% of your global revenue.[6]
  • 21% of customers are concerned that their credit card information will be stolen, and 19% are concerned that their private information may be exploited.[6]
  • eCommerce sales are anticipated to reach $630 billion or more in 2020, meaning that fraud will cost the economy an estimated $16 billion.[6]
  • According to the report’s study of retailers, 82% of them think that consumers are very worried about fraud.[7]
  • In 2020, 89% of businesses polled for the WorldPay from FIS Global payment risk mitigation report reported revenue losses due to payment fraud.[7]
  • At the most difficult end, 8% of retailers claim that their efforts to avoid fraud account for 11% or more of earnings.[7]
  • Fraud costs 36% of businesses even more, with those businesses paying between 6% and 10% of their earnings to combat fraud.[7]
  • Low-margin firms might suffer greatly from payment fraud; 51% of merchants reported losing between 1% and 5% of their sales in 20.[7]
  • Nearly 38% of merchants lost more than 6% of their income to payment fraud, which has an effect that is both broad and deep.[7]
  • 34% of all customers who reported the fraud to the FTC, up from only 23% in 2019, said they had lost money.[8]
  • The Federal Trade Commission received more than 2.1 million fraud complaints from consumers in 2020, with imposter scams continuing to be the most prevalent kind of fraud reported to the agency.[8]
  • 66% of retailers believe return abuse has worsened over the last 12 months, and 44% claim it has occurred.[9]
  • Increasing even the tiniest user friction to stop fraud is a risky move at a time when shopping cart abandonment continues to affect 75% of all sales.[9]
  • This saves the modest 5% of transactions that ever need further inspection for step-up challenges.[9]
  • In the United States, synthetic identity theft is now one of the financial crimes with the greatest growth rates, resulting in yearly losses of an estimated $20 billion.[9]
  • In addition to assisting the U.S. in maximizing our income, deco also assists David Pujades, chief operating officer of revolving 18% of unsuccessful U.S. credit card payments were recovered.[10]
  • 29% of business brand online purchases end in a chargeback after a bank complaint triggers an inquiry.[11]
  • Nearly 90% of international retailers feel it’s critical to their company plan for consumer safety and to prevent lost earnings.[11]
  • eCommerce fraud is particularly prevalent in Asia Pacific nations, where lost sales account for 4% of a brand’s entire turnover.[11]
  • 18% of customers would avoid trying again after rejecting an online purchase before switching to another retailer.[11]
  • The form of online fraud has grown the most, with retailers reporting a 60% spike in refund abuse in the previous year.[11]
  • Online payment fraud affects retailers globally, but it is particularly common in Mexico, where businesses witnessed an increase of 77% in this crime last year.[11]
  • 50% of U.S. qualified businesses may now use Shopify protect, and at the end of May, 10% of merchants that have shop pay active will now have access to it.[11]
  • With the use of phishing emails, malicious software installed on the device being used to make the transaction, weak passwords, and account takeover fraud, almost 23% of companies encountered this last year.[11]
  • $69.13 billion will be spent on payment fraud management by business firms annually in the eCommerce fraud detection industry by 2025.[11]
  • Although 39% of all fraud assaults worldwide are friendly fraud, this sort of chargeback fraud is rampant in Australia and Canada.[11]
  • Avoiding false rejections and protecting customer experience hot topic can accept more valid orders and automate fulfillment for their top customers thanks to Signifyds’ rapid detection of authentic clients, which is backed by a 100% financial guarantee.[12]
  • Since 98% of online transactions are made by customers who have previously made purchases via the Signifyd commerce network, genuine clients are immediately identified and moved along the purchasing process.[12]
  • The eCommerce fraud detection and prevention market amount is anticipated to increase gradually over the next several years, topping $69 billion by 2025.[13]
  • According to Signifyd, over a third of the 1,500 respondents in a September study acknowledged engaging in friendly fraud, compared to 14% of respondents in a survey conducted in January.[14]
  • According to Krebs, who characterized the setup procedure as rapid, roughly 50% of fraud can be caught using the contents of a company’s backlog.[14]

Also Read

Reference

  1. chargebacks911 – https://chargebacks911.com/ecommerce-fraud/
  2. financesonline – https://financesonline.com/ecommerce-fraud-statistics/
  3. kount – https://kount.com/
  4. kount – https://kount.com/blog/ecommerce-fraud-prevention-detection-best-practices/
  5. lexisnexis – https://risk.lexisnexis.com/insights-resources/research/us-ca-true-cost-of-fraud-study
  6. spd – https://spd.group/machine-learning/e-commerce-fraud-detection/
  7. fisglobal – https://www.fisglobal.com/en/insights/merchant-solutions-worldpay/article/the-best-fraud-prevention-strategies-for-ecommerce
  8. ftc – https://www.ftc.gov/news-events/news/press-releases/2021/02/new-data-shows-ftc-received-22-million-fraud-reports-consumers-2020
  9. outseer – https://www.outseer.com/ecommerce-fraud/ecommerce-fraud-protection/
  10. riskified – https://www.riskified.com/
  11. shopify – https://www.shopify.com/enterprise/ecommerce-fraud-prevention
  12. signifyd – https://www.signifyd.com/
  13. statista – https://www.statista.com/statistics/1273278/market-size-e-commerce-fraud-detection-prevention-market/
  14. techtarget – https://www.techtarget.com/searchenterpriseai/feature/AI-fraud-detection-tools-can-help-rising-e-commerce-fraud

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