The number comes out of a study conducted by Juniper Research. On top of the predicted £284.9bn global merchant losses between now and 2028, the report predicts that £71.6bn will be lost in 2028 alone. 

The rapid growth in losses is fueled by the surge of eCommerce transitions, where there is an increased use of artificial intelligence (AI) and cybercriminals to carry out attacks. 

In the UK, £1.2 billion was stolen by criminals through fraud last year, according to the most recent UK Finance Annual Fraud Report. Of the cases last year, 78% of them happened online, making up over a third (36%) of the total losses. 

“Fraud has a devastating impact on victims and over £1.2 billion was stolen by criminals last year. The banking and finance sector is at the forefront of efforts to tackle this criminal activity,” said David Postings, chief executive at UK Finance. “The sector spends billions on detection and prevention and also refunds people who have fallen victim, even if the fraud originated outside the banking system.”

Online payment fraud involves fraudulent or illegal transactions conducted by cybercriminals through various fraudulent strategies such as phishing, business email compromise, or account takeover.

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In confronting the modern online payment fraud landscape, Juniper points to the adoption of AI methods in fraud prevention practices. 

Cara Malone, research author at Juniper said: “(AI) utilises a variety of data to examine patterns within fraud, which is extremely advantageous in a space where fraudsters usually attack at scale, rather than attacking a specific customer.”

On a more personal level, the researchers at UK Finance urge customers to follow guidelines set out by the Take Five to Stop Fraud campaign:

• Stop: Take a moment to stop and think before parting with your money or information could keep you safe.   
• Challenge: Could it be fake? It’s ok to reject, refuse or ignore any requests. Only criminals will try to rush or panic you.   
• Protect: Contact your bank immediately if you think you’ve fallen for a scam and report it to Action Fraud.   

The Juniper Online Payment Fraud report can be found here.