The US eCommerce fraud prevention market is on a growth trajectory: eCommerce sales are expected to generate more than $700 billion in the United States by 2023. However, the online environment has emerged as the preferred channel for fraudulent transactions, given that card-not-present payments present various opportunities. By analyzing various data sources to identify unusual behavior or high-risk transactions through rule-and/or analytics-based methodologies, eCommerce fraud prevention solutions provide the core intelligence essential to help organizations address fraud and security challenges.
Protecting retailers from eCommerce fraud by identifying high-risk transactions, and supporting and protecting newer service delivery experiences, are key focus areas for the eCommerce fraud prevention solution providers.
Our research indicates that eCommerce fraud prevention solutions focused primarily on static data and rule-based analytics to address transaction fraud are inadequate for preventing sophisticated fraud mechanisms. There is a clear need for behavioral, analytics-based fraud management solutions that can leverage the power of machine learning and artificial intelligence to identify threats and assist with timely decision-making for fraud prevention.
The ability to collect, create and augment data from across verticals, industries, various sizes of companies, locations, and types of products to find patterns and behaviors that would otherwise be hidden if the data were only across one network, vertical, or location is imperative. Ultimately, it is not just the amount of data that is collected: what the provider is able to do with the data is what matters for successful eCommerce fraud prevention.
The Frost Radar reveals the market positioning of companies in an industry using their Growth and Innovation scores as highlighted in the Frost Radar methodology. The document presents competitive profiles on each of the companies in the Frost Radar based on their strengths, opportunities, and a small discussion on their positioning. We analyze hundreds of companies in the industry and benchmarks them across 10 criteria on the Frost Radar, where the leading companies in the industry are then positioned. Industry leaders on both the Growth and Innovation indices are recognized as best practice recipients.