Global eCommerce Fraud Losses Are Soaring: $362 Billion by 2028
New research from Juniper Research states that merchants lost around USD 38 billion to online fraud in 2023 alone, and these figures will rise to USD 91 billion by 2028. Combined, merchant losses from online payment fraud are expected to exceed USD 362 billion globally between 2023 and 2028—driven by rapid growth in ecommerce transactions, particularly in emerging markets.
Top Online Fraud Threats for 2024: ATO, Chargebacks, Identity Theft & More
A market analysis by Ekata outlines the most common types of online payment fraud that will affect merchants in 2024, including:
Account takeover (ATO)
Friendly fraud / chargeback abuse
Synthetic identity theft
Promo abuse
E-gift card fraud
Affiliate fraud
Triangulation fraud
Meanwhile, the MRC report on Global Payments & Fraud confirms that in 2023, the most prevalent fraud types were:
Chargebacks
Refund and coupon abuse
Account reactivation fraud
Identity theft
Card testing
Why Chargeback and Friendly Fraud Are Rising in the BNPL Era
Chargeback fraud and so-called “friendly fraud” remain two of the most pressing challenges for ecommerce merchants. As chargeback processes become easier to initiate, some consumers abuse the system—requesting refunds without returning products, or falsely claiming non-receipt.
The growth of Buy Now, Pay Later (BNPL) platforms has further compounded the issue, bringing in millions of new shoppers globally, many of whom are unfamiliar with responsible digital finance practices.
Merchants Embrace SCA and Prepare for PSD3 Compliance
To combat these threats, about 85% of merchants have already adopted Strong Customer Authentication (SCA) to meet current PSD2 requirements. Many are also preparing for PSD3, the EU’s next regulatory initiative focused on reinforcing digital payment security and data transparency.
Combating Fraud with Behavioural Biometrics and Pre-Checkout Profiling
Forward-looking merchants are moving fraud prevention beyond checkout with new technologies such as:
Behavioural biometric analytics (identifying fraud based on real-time user behaviour)
Pre-checkout risk profiling (screening users before payment initiation)
These tools reduce friction for real customers while making fraud far harder to execute—ultimately delivering a safer, more seamless ecommerce experience.