Online fraud remains a serious problem and is one that cannot be ignored, warns Alessio Damonti, deputy chief executive and head of sales and business development at Axerve.
Over the decades, the solutions to protect buyers and sellers against cybercrime have multiplied and evolved. However, ecommerce is still not risk-free – and one of the main reasons for this is the increasingly sophisticated tools available to those who commit illegal acts online.
We can see this clearly in the statistics from econsumer.gov, an organisation that collaborates with, among others, the Federal Trade Commission and AGCOM. The number of cross-border fraud reports has increased more than 200% from 2017 to the end of 2020, reaching losses of $216m (£163m).
According to data published by UK Finance in 2021, the annual value of ecommerce fraud losses on UK-issued debit and credit cards in the UK grew from £28m in 2002 to £376.5m in 2020, with the peak in 2018 with £393.4m.
It also seems like the Covid pandemic has had a negative impact on these statistics. In fact, the National Cyber Security Centre (NCSC) declared in May 2021 that online scams increased by 15 times during the pandemic period in 2020-21.
The UK and European data highlighted above is in line with what we see from Axerve’s clients and partners, which is why it is extremely important to take fraud prevention into account from the start when looking at payment-processing solutions.
“Fraud authentications and approvals can seriously impact revenue”
The world of fraud authentications and approvals can seriously impact revenue if not taken into account when making choices about payment providers, acquirers and platforms.
When looking at the best solution for our clients, all of these factors are weighed up to make sure the business makes the most of these mandatory steps and thrives in the current payment landscape, by ensuring optimal performance in payment processing, high security levels for their transactions and a safe and frictionless checkout experience for their customers.
Axerve has introduced a fraud-prevention solution based on AI and machine learning that perfectly integrates with the online gateway.
Reduction of the friction points in the payment process, a decrease in chargebacks and increase in conversion rates are just some of the strengths of the platform.
These, paired with the high security standards of the payment gateway, increase payment protection for both merchants and their customers.
To further analyse online fraud and look at the possible solutions to cybercrime statistics, take a look at Axerve’s newest white paper on online fraud, which can be downloaded for free.
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