While global spend on online fraud detection and prevention will rise 22 percent over the next five years to nearly $10 billion, emerging markets will not see much of it and will suffer, according to a new report from Juniper Research. Until now, perceived costs and low awareness of available fraud prevention technology have kept adoption relatively low, the report said.
Increasing e- and m-commerce transactions (along with more widely available stolen information and the global move to EMV) have long been blamed for increasing fraud in the online payments space. The U.K.-based consultancy, however, was even more specific about why companies are finally spending more to combat online fraud. While transactions have been steadily climbing worldwide, the impending adoption of IoT payment applications will supercharge this increase.
Additionally, Juniper predicted that the introduction of 3D Secure 2.0 will result in investment in authentication technology as part of a fraud detection and prevention strategy.
Unfortunately, emerging markets will see little of this investment and will remain at risk. Only 4 percent of global spend on antifraud technologies will reach markets in Latin America, India, Africa and the Middle East. Subsequently, those areas will experience increasing rates of CNP fraud, the report said.