Businesses hit by rising e-commerce fraud: report Featured

e-commerce fraud is increasing pressure on businesses’ margins, adding a further barrier to growth during economic uncertainty, with nearly three-quarters of businesses having diverted engineering resources, and more than half curtailing expansion plans due to fraud concerns, according to a new report from financial services and software as a service company Stripe.

Stripe reports that by combining data from billions of transactions on its network from 2019–2021 with a survey of more than 2,500 businesses from 9 countries, it identified global fraud patterns across geographies and business models – and detailed the “growing burden global businesses face from ecommerce fraud, the difficult choices they must make, and the steps they can take to fight back and protect their margins”.

Stripe lists key findings of the survey as: Nearly three-quarters of businesses have diverted engineering resources, and more than half have curtailed expansion plans, due to fraud concerns.

Subscription businesses struggle most with fraud. Seventy-two per cent think they will lose more money to fraud in 2022 than 2021.

The volume and sophistication of fraud varies dramatically across markets, requiring tools that adapt to local fraud patterns. France had nearly twice the fraud rate of Germany, while Singapore experienced half the rate of the wider Asia-Pacific region.

“Fraud doesn’t slow down when the economy does. It’s vital for businesses to maximise the value of every dollar by turning away as many fraudulent actors as possible without blocking good customers—and this report shows them how they can do it,” said Will Megson, product lead for Stripe Radar , Stripe’s main fraud prevention product.

Stripe says that more than half of businesses surveyed reported that fraud is a growing concern and this changing risk environment has had a particular impact on businesses offering B2B SaaS products and B2C subscriptions.

These companies are more susceptible to fraud, […]

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