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The COVID-19 outbreak saw a surge in e-commerce, but it also exposed a darker side. In 2020, over ** percent of all scams worldwide were attributed to online purchases. However, as the pandemic waned, incidents of online shopping scams decreased, accounting for in *** e-commerce transactions between January and June 2022. In 2023, the figure increased again to **** percent.

Rising costs and prevention efforts

As online fraud continues to escalate, so do the financial losses and prevention efforts. E-commerce losses to online payment fraud were estimated at ** billion U.S. dollars globally in 2022, with projections reaching ** billion U.S. dollars by 2023. In response, the e-commerce fraud detection and prevention market is expected to grow significantly, potentially surpassing 100 billion U.S. dollars by 2027. 

Merchants are adapting their strategies to combat the rising tide of online fraud. In 2024, ** percent of e-merchants prioritized preventing fraud and chargebacks in their fraud management strategy, up from ** percent in 2021. Additionally, approximately two-thirds of online merchants reported using or planning to use generative AI in e-commerce fraud management within the next 12 months to safeguard online transactions.