E-Commerce Fraud Statistics By Revenue, Merchants and Facts

Introduction

E-Commerce Fraud Statistics: The digital marketplace has transformed how we shop, offering unprecedented convenience and global access. However, this technological revolution brings a growing challenge: eCommerce fraud.  By going through eCommerce Fraud Statistics, we can learn that as online transactions become increasingly prevalent, cybercriminals are developing sophisticated methods to exploit vulnerabilities in digital payment systems.

The landscape of eCommerce fraud is rapidly evolving, with financial losses, consumer trust, and merchant sustainability hanging in the balance. Understanding the nuances of these fraud dynamics is crucial for businesses, consumers, and cybersecurity professionals alike.

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• E-commerce fraud value surged from 17.5 billion USD in 2020 to 48 billion USD in 2023.
• Latin America leads in e-commerce fraud losses at 4.6%.
• Online purchase scams increased from 2.8% to 41.9% of total scams between 2015-2023.
• 6% of respondents have lost money to online shopping scams in 2023.
• The 35-44 age group is most prone to online scams at 77.3%.
• Websites are the primary channel for online scams at 36.7%.
• 70% prefer payment methods that do not require merchant information sharing.
• Refund/policy abuse is the top fraud type at 48%.
• Two-factor authentication is the most effective anti-fraud tool.
• The E-commerce fraud detection market is expected to reach 102.28 billion USD by 2027.
• First-party misuse affects 45% of merchants.
• “Fraud as a service” is the most emerging fraud trend at 56%.
• Website orders are most fraudulent at 67%.
• Improving AI/ML fraud accuracy is the top focus for 55% of merchants.
• 62% believe online fraud is unavoidable.

Losses Incurred With E-Commerce Fraud

(Reference: statista.com)

• eCommerce Fraud Statistics The value of e-commerce fraud has increased consistently.
• In 2020, the vale of e-commerce fraud is 17.5 billon USD.
• As of 2023, the value of e-commerce fraud has been 48 billion USD.

E-commerce Revenue Loss By Region

(Reference: statista.com)

• eCommerce Fraud Statistics show that Latin America has the highest share of money lost due to e-commerce fraud, with 4.6%.
• Europe has the 2nd highest share of money lost due to e-commerce fraud, with 3.1%.
• APAC (Asia-Pacific) ranks third, with 2.9% of e-commerce revenue lost due to fraud.
• North America has the lowest share of money lost due to e-commerce fraud, with 2.4%.

Types of E-Commerce Fraud

(Reference: statista.com)

• eCommerce Fraud Statistics show that refund/policy abuse is the highest type of fraud experienced by 48% of respondents.
• First-party misuse is the 2nd highest type of fraud experienced by 45% of respondents.
• Phishing/pharming/whaling ranks third, experienced by 42% of respondents.
• Card testing ranks fourth, experienced by 38% of respondents.
• Identity theft ranks fifth, experienced by 36% of respondents.
• Coupon/discount abuse ranks sixth, experienced by 34% of respondents.

E-Commerce Fraud Detection Market Size

(Reference: statista.com)

• eCommerce Fraud Statistics show that the market size of eCommerce fraud detection has been increasing consistently over time.
• In 2021, the e-commerce fraud detection market size was 33.65 billion USD.
• By the end of 2023, the e-commerce fraud detection market had become 48.41 billion USD.
• By the end of 2027, the e-commerce fraud detection market will be 102.28 billion USD.

Online Purchase Scam Proportion

(Reference: statista.com)

• eCommerce Fraud Statistics show that the share of online purchase scams from total scams has increased consistently.
• In 2015, the share of online purchase scams comprised 2.8%.
• As of 2023, the share of online purchase scams comprised 41.9%.

Median Monetary Loss Per Online Scam

(Reference: statista.com)

• eCommerce Fraud Statistics show that median monetary losses due to online purchase scams have been fairly consistent over time.
• In 2015, the median monetary loss from online purchase scams was 110 USD.
• In 2022, the median monetary loss from online purchase scams was 114 USD.

Proportion of Online Shopping Scam Victims

(Reference: statista.com)

• eCommerce Fraud Statistics show that the proportion of people who lose money due to online scams has been increasing consistently.
• In 2015, 71.2% of respondents reported losing money due to online shopping scams.
• As of 2023, 82.6% of respondents have lost money due to online shopping scams.

Losing Money Due to Online Scams By Age

(Reference: statista.com)

• eCommerce Fraud Statistics: The age group of 35-44 is the most prone to online scams, as per 77.3% of respondents.
• The age group of 18-24 is the 2nd most prone to online scams, as per 77.6% of respondents.
• The age group of 25-34 ranks third, with 76.5% of respondents reporting susceptibility to online scams.
• The age group of 45-54 ranks fourth, with 75.4% of respondents reporting being victims of online scams.
• The age group of 55-64 ranks fifth, with 69.3% of respondents losing money to online scams.
• The age group 65+ is relatively the least prone to online scams, as per 62.1% of respondents.

Means For Online Scam

(Reference: statista.com)

• eCommerce Fraud Statistics show that websites have the highest proportion of online scams among different modes, according to 36.7% of respondents.
• According to 20.3% of respondents, social media is a leading contact channel for online shopping scams.
• 8% of respondents feel email is a leading contact channel for online shopping scams.

Customer Reaction Towards Online Payment Security

(Reference: statista.com)

• eCommerce Fraud Statistics show that 70% of respondents prefer to use payment methods where it is not essential to share information with merchants.
• 64% of respondents are more inclined to purchase from businesses that securely store payment details.
• 62% of respondents believe that fraud is unavoidable when shopping online.
• 62% of respondents feel anxious when security information is not requested during online transactions.
• 59% of respondents are more concerned about online payment fraud than 12 months ago.

E-Commerce Fraud Faced By Merchants

(Reference: statista.com)

• eCommerce Fraud Statistics show that Refund/policy abuse is a major fraud experienced by 48% of merchants.
• First-party misuse (e.g., friendly/chargeback fraud) is the second most common fraud, reported by 45% of merchants.
• Phishing, pharming, or whaling is experienced by 42% of merchants, making it the third most common fraud type.
• Card testing ranks fourth, with 38% of merchants encountering this type of fraud.
• Identity theft is the fifth most prevalent fraud type, reported by 36% of merchants.

Emerging Fraud Online Merchants Experienced

(Reference: statista.com)

• eCommerce Fraud Statistics show that fraud as a service scam is the most emerging fraud experienced by 56% of respondents.
• Reseller and bot activity is 2nd most most emerging fraud experienced by 53% of respondents.
• Social engineering via customer service ranks third, experienced by 45% of respondents.
• The fourth most emerging fraud is policy abuse, reported by 40% of respondents.

Order Type With Most  Fraud

(Reference: statista.com)

• eCommerce Fraud Statistics show that according to 67% of merchants, website order is the most common form where they experience fraud.
• Mobile app orders rank second, with 45% of merchants reporting fraud in this form.
• Promoted or discounted orders rank third, as 41% of merchants reported.
• Call center orders are the fourth most common form, with 40% of merchants experiencing fraud.

Areas For Management of E-Commerce Frauds

(Reference: statista.com)

• eCommerce Fraud Statistics show that improvement of fraud AL/ML accuracy is the most prominent area of improvement according to 55% of merchants.
• Streamlining fraud orchestration, including integrating and optimizing end-to-end fraud management processes, is the second most significant focus area, noted by 51% of merchants.
• Expanding access to and availability of data ranks third, with 50% of merchants identifying it as an area for improvement.
• 41% of merchants report improving payment and refund policies, such as refund management, as the fourth priority.

Effective Tools For Merchants Against Fraud

(Reference: statista.com)

• eCommerce Fraud Statistics show that two-factor authentication is the most effective tool for fighting fraud, according to 61% of respondents.
• Device ID solutions are the second most effective tool, as highlighted by 53% of respondents.
• Machine learning ranks third, with 48% of respondents considering it highly effective in combating fraud.
• Rules-based systems are the fourth most effective tool, cited by 45% of respondents.

Challenges in The Management of E-Commerce Fraud

(Reference: statista.com)

• eCommerce Fraud Statistics show that gaps in fraud tool’s capabilities and features are the most prominent challenge, according to 40% of respondents.
• A lack of internal resources is the second most significant challenge, identified by 39% of respondents.
• Identifying and responding to new types of fraud attacks ranks third, with 38% of respondents highlighting it as a key issue.
• 34% of respondents are challenged by data availability and access and by improving fraud AI/ML accuracy.
• Gaining executive sponsorship and focus on fraud is a concern for 33% of respondents.

Popular Online Fraud Detection Applications

• Akamai
• F5
• Imperva
• BioCatch
• Radware
• Forter
• Signifyd
• LexisNexis Risk Solutions
• TransUnion
• Sumsub
• HUMAN Security
• Mangopay
• Plus Technologies & Innovations
• XTN Cognitive Security
• Kount
• Pindrop
• Cleafy

(Source: gartner.com)

Conclusion

The escalating landscape of eCommerce fraud presents a complex, multifaceted challenge for businesses and consumers. As shown by eCommerce Fraud Statistics, with fraud losses reaching 48 billion USD in 2023 and projected to grow, the stakes have never been higher. Regional variations, demographic vulnerabilities, and increasingly sophisticated scamming techniques underscore the need for robust, adaptive cybersecurity strategies. Merchants focus on technological solutions like AI, machine learning, and two-factor authentication to combat these threats.

The future of secure online commerce depends on a collaborative, proactive approach that balances technological innovation with human-centric security practices.

Saisuman Revankar

Saisuman is a skilled content writer with a passion for mobile technology, law, and science. She creates featured articles for websites and newsletters and conducts thorough research for medical professionals and researchers. Fluent in five languages, Saisuman's love for reading and languages sparked her writing career. She holds a Master's degree in Business Administration with a focus on Human Resources and has experience working in a Human Resources firm. Saisuman has also worked with a French international company. In her spare time, she enjoys traveling and singing classical songs. Now at Smartphone Thoughts, Saisuman specializes in reviewing smartphones and analyzing app statistics, making complex information easy to understand for readers.

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