Online fraud detection spending expected to hit $9.2 billion by 2020

Online fraud detection spending by eCommerce merchants and financial institutions is expected to hit $9.2 billion by 2020, according to a report released this week by Juniper Research.

According to a press release sent to CoinReport, this figure is up 30% from current spending levels. The report identifies the main driver for increased spending is to prevent fraud on mobile platforms, which fraudsters have identified as having a particular vulnerability. Several companies have yet to put in place similar levels of protection on mobile applications as those in place for desktop transactions.

“Digital security companies regard the mitigation of mobile fraud as a key revenue generator in the medium term,” said Gareth Owen, report’s author. He feels this is the reason for the increase in advanced biometric authentication technology development and implementation.

The report includes a comparative analysis of 12 vendors involved in Fraud Detection and Prevention (FDP) across a variety of criteria including fraud detection performance and technological innovation. CyberSource, Experian and FICO were found to be the leading vendors within this space.

Earlier this year, Juniper Research released the report Online Payment Fraud: Key Vertical Strategies and Management 2016-2020, which provides a global analysis of online FDP. The report found that the top vendors have been able to reduce fraud rates within certain eCommerce verticals to less than 0.1%.

Logo via press release