Artificial Intelligence (AI) is amplifying the sophistication of attacks within the e-commerce sector, particularly through the use of deepfake technology to bypass verification systems, according to a recent report by Juniper Research, a leading expert in financial technology and payment markets.
The report highlights that this growing threat, combined with an increase in ‘friendly fraud’—where customers commit fraud themselves, such as refund fraud—is putting significant pressure on merchant profitability.
Juniper Research estimates that the global value of e-commerce fraud will rise sharply from $44.3 billion in 2024 to $107 billion by 2029, marking a 141 percent increase over five years.
The report, titled *Global Merchant Fraud Prevention Market 2024-2029*, explains that AI is enabling fraudsters to outpace security measures by launching more sophisticated and large-scale attacks. With AI, fraudsters are creating realistic messages and synthetic identities, resulting in higher-quality attacks at an unprecedented scale. These automated, AI-driven attacks are overwhelming traditional, rules-based fraud prevention systems.
“E-commerce merchants must adopt fraud prevention systems with AI capabilities to rapidly identify new fraud tactics,” said report author Thomas Wilson. “This is especially critical in developed markets, where larger merchants are at a higher risk of fraud, including the testing of stolen credit cards.”
To counteract these advanced threats, merchants are encouraged to integrate biometric identification technologies into their checkout processes. Liveness detection, a method that confirms the presence of a real person during authentication, could help secure transactions against increasingly sophisticated deepfake fraud attempts.
Juniper Research’s new report provides the most comprehensive analysis of the merchant fraud prevention market to date, covering over 25,000 data points across 60 countries over the next five years. It includes a ‘Competitor Leaderboard’ and examines both current and future market opportunities.
Juniper Research, with two decades of experience, continues to provide essential market intelligence and advisory services to the global financial sector, serving many of the world’s leading banks and financial institutions.
