Payments fraud prevention in the global payments industry

Overview

The global payments industry, valued at $2.4 trillion, is expanding at a rate of 5% per year. However, it faces significant challenges from sophisticated fraud tactics, including deepfakes and synthetic ID fraud. Payments providers must adopt advanced technologies to combat these threats while ensuring a seamless customer experience.

Key Insights

Industry Growth: The global payments industry is projected to grow at 5% annually, reaching 35% of total banking revenue by 2028. (Source: McKinsey Global Payments Map)
Fraud Losses: Online payment fraud is expected to exceed $362 billion between 2023 and 2028. (Source: Juniper Research)
Consumer Impact: Over 50% of consumers in 18 countries reported fraud attempts in 2024. (Source: TransUnion)
Fraud Types: Emerging fraud types include deepfakes, synthetic ID fraud, and AI-driven scams.

BFSI Relevance

Why Relevant: Fraud prevention is critical for maintaining trust and profitability in the payments sector.
Primary Sector: Financial Services
Subsectors: Payments, Fraud Detection
Actionable Implications:
- Invest in advanced fraud detection technologies.
- Balance fraud prevention with customer experience to avoid revenue loss.
- Educate customers to recognize and report fraud.

Entities

Organizations:
- McKinsey: Provided industry growth data.
- TransUnion: Reported on consumer fraud experiences.
- Juniper Research: Forecasted fraud losses.
Vendors:
- Feedzai: Mentioned in context of fraud loss reporting.
- BioCatch: Discussed in relation to scam prevention.

Author Authority

The article is authored by Ishanaa Rambachan, Uzayr Jeenah, and Susan Scavone, whose roles and authority are not specified in the document.