Online Payment Fraud
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ONLINE PAYMENT FRAUD Emerging Threats • Segment Analysis • Market Forecasts 2020-2024 Reprint for Experian www.juniperresearch.com ONLINE PAYMENT FRAUD Reprint for Experian 1 First Published February 2020 Juniper Research endeavours to provide accurate information. Whilst information, advice or comment is believed to be correct at the time of publication, Juniper Research cannot accept any responsibility © Juniper Research Limited All rights reserved. for its completeness or accuracy. Accordingly, Juniper Research, author or distributor shall not be liable to any person or entity with respect to any loss or damage caused or alleged to be caused Published by: directly or indirectly by what is contained in or left out of this publication. Juniper Research Limited, 9 Cedarwood, This report contains projections and other forward-looking statements that have been developed Chineham Park, Basingstoke, through assumptions based on currently available information. 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Online Payment Fraud: Market Dynamics i. Fraud Detection............................................................................................... 14 1.1 Introduction ...................................................................................... 4 ii. Exemptions from SCA .................................................................................... 14 Table.1.8: CNP Fraud Rate Thresholds for SCA Exemption............................... 15 1.2 Development of Fraudulent Activity .............................................. 4 Figure 1.1: eCommerce & Fraud Attempt Growth (%), 2018-2019 ........................ 5 1.5 The API in the Machine ................................................................. 16 1.3 Key Trends in Digital Fraud ............................................................ 5 1.6 The Fintech in the Equation ......................................................... 16 1.3.1 Fitting the Human into Payment Fraud ....................................... 5 1.7 Consumer Behaviour, the Fraudsters’ Friend ............................ 17 i. API Authentication Security ............................................................................. 17 1.3.2 Continued Darknet Activity & Messaging Apps ......................... 5 i. From Darknet to Clearnet .................................................................................. 5 ii. Avoiding Logic Abuse ..................................................................................... 18 Table 1.2: Average Dark Market List Price ($), Various Tools & Products used by 1.8 3-D Secure 2.0 (3DS 2.0) & Biometric Authorisation of Fraudsters July 2018 ............................................................................................ 7 Transactions ........................................................................................ 19 Table 1.3: Average Dark Market List Price ($), Various Guides used by Fraudsters 1.8.1 Further 3DS Implications ........................................................... 20 July 2018 .............................................................................................................. 7 1.8.2 Next Steps & Regional Outlook ................................................