E-commerce payment fraud losses worldwide 2020-2023

According to estimates, e-commerce losses to online payment fraud were estimated at 41 billion U.S. dollars globally in 2022, up from the previous year. The figure is expected to grow further to 48 billion U.S. dollars by 2023.

Rise in e-commerce fraud

Movement restrictions introduced across the globe to counter the COVID-19 pandemic led to an unprecedented increase in e-commerce, opening a window for opportunistic fraudsters. The impact of the pandemic on e-commerce fraud attempts has been felt globally. In 2021, three-quarters of online merchants reported a net increase in these attacks compared to before the sanitary crisis. This phenomenon, however, has affected each region differently, with the share of e-commerce revenue lost to fraud being higher in Asia-Pacific and Latin America that year.

Not so friendly fraud

The most common type of e-commerce fraud attack is known as friendly fraud. Friendly fraud occurs when a customer knowingly completes a purchase with their debit or credit card and then proceeds to dispute that purchase with their bank for a refund. In 2021, nearly 40 percent of online merchants worldwide reported having experienced this type of attack. While North America recorded a lower share of accepted orders resulting in friendly fraud than other regions of the world, this method accounted for nearly 30 percent of fraud losses experienced by online merchants in the U.S. alone.