19 Surprising Ecommerce Fraud Statistics for 2024

As the world becomes more digitalized, so do fraudulent activities. No industry is safe from it, and Ecommerce is no exception. Some shocking yet intriguing statistics were found on Ecommerce fraud that every business owner should know. From increasing chargeback rates to the most common types of fraud, these numbers will help you evaluate your current security measures and understand where you need to improve. In this blog post, we have compiled 19 surprising Ecommerce fraud statistics that have been collected from various sources to shed light on how prevalent Ecommerce fraud has become in recent years. So buckle up and get ready to discover the reality of Ecommerce fraud.

How do we collect these statistics?

Gathering data from diverse sources, such as B2B Mastercard and Exploding Topics, the basis of our statistics. We compile these statistics from trusted organizations and market research firms to ensure their reliability and accuracy.

19 Ecommerce fraud statistics

Let's get into the world of 19 shocking Ecommerce fraud statistics:

1. Global Ecommerce fraud is increasing, with losses reaching $41 million in 2022 and predicted to exceed $48 billion in 2023. [Source: b2b Mastercard]
2. Every $100 in fraudulent orders results in $207 in losses to the business. [Source: Explodingtopics]
3. The average Ecommerce company uses 5 fraud detection tools. [Source: Explodingtopics]
4. While current losses tied directly to triangulation fraud can be hard to quantify, this form of Ecommerce fraud is ultimately a card-not-present attack, which, collectively, is estimated to cost merchants worldwide approximately $130 billion by the end of 2023. [Source: b2b Mastercard]
5. 25% of Ecommerce shoppers ask for a refund even though they plan on keeping the product. [Source: Explodingtopics]
6. 75% of Ecommerce businesses plan to increase their fraud prevention budget. [Source: Explodingtopics]
7. 43% of Ecommerce consumers have been victims of payment fraud. [Source: Explodingtopics]
8. On average, Ecommerce businesses lose approximately $48 billion to fraud annually. [Source: Explodingtopics]
9. The past year has seen a 16% jump in global losses from Ecommerce fraud. One key reason for that increase is new forms of payment. Adopting payment methods like Buy Now Pay Later has created new opportunities for fraud. [Source: Explodingtopics]
10. As the fastest-growing app of all time, ChatGPT has absolutely blown up. Is it any wonder, then, that hackers have started using these AI tools and chatbots for nefarious purposes? Reports have indicated just how widespread this threat is with the discovery of over 50 fake AI apps scamming unsuspecting users by deploying phishing attacks to capture their personal and payment data. [Source: b2b Mastercard]
11. The global Ecommerce fraud detection and prevention market is worth an estimated $47.93 billion. [Source: Explodingtopics]
12. Ecommerce companies lost 2.9% of global revenue to fraud last year. [Source: Explodingtopics]
13. Recent reporting estimates that merchants are expected to pay over $100 billion in chargebacks this year alone and it is suggested that friendly fraud will represent 61% of all chargebacks. [Source: b2b Mastercard]
14. By region, North American and European companies spend an average of 10% of total revenue on fraud management. Merchants in APAC countries spend 15%. Latin American companies spend an average of 19% of revenue managing fraud. [Source: Explodingtopics]
15. Fraud cases were up 106% for collectibles, 104% for luxury goods, and 42% for leisure and outdoor products. [Source: Explodingtopics]
16. Europe faces significant Ecommerce fraud risk, with Germany and France being hardest hit. [Source: b2b Mastercard]
17. North America has the highest fraudulent transaction value globally, accounting for over 42% of Ecommerce fraud. [Source: b2b Mastercard]
18. Adopting a multi-layered approach to your fraud prevention strategy is key. A recent survey found that 70% of companies use three or more tools to help strike the right balance between Ecommerce fraud prevention efforts and a smooth consumer experience at each touchpoint. [Source: b2b Mastercard]Latin America experiences 20% revenue loss to fraud, with 3.7% of Ecommerce orders being fraudulent. [Source: b2b Mastercard]
19. By incorporating machine learning, AI, risk-scoring, and behavioral analysis, retailers can establish multi-pronged fraud prevention measures to combat the ever-changing landscape of fraud threats. [Source: b2b Mastercard]

Conclusion

As we wrap up our exploration of Ecommerce fraud statistics, it becomes evident that awareness and proactive measures are key to mitigating risks. Armed with these insights, businesses can fortify their defenses, ensuring a secure and trustworthy online shopping experience for both merchants and consumers alike. From using advanced fraud detection systems to educating customers about online safety, every precaution counts.