Total payments fraud stands at $429m as bad guys use various techniques to steal information
Naushad K. Cherrayil
Dubai: Retail businesses globally lost an average of $2.98 million each to fraudulent activity over the last 12 months, taking the total payments fraud to $429 billion in 2023, as cybercriminals use various techniques to steal information or disrupt business operations.
According to Adyen’s Retail Report 2024, 45 per cent of retail businesses globally have been a victim of a cyber-attack or data leak in the last year alone.
“Fraud is a pervasive challenge for retailers, and today’s findings demonstrate how it can significantly impact profits,” Roelant Prins, CCO of Adyen, said.
“Fraudsters are deploying more sophisticated methods when they attack businesses, including the application of AI, and it’s therefore critical to invest in the right defense mechanisms to protect the company and customers.”
In the UAE, retailers lost AED11.3 million due to cyberattacks in 2023 while the average amount lost per customer increased by 270 per cent to AED3,250, compared to an average of AED880.
The report said that substantial number of UAE businesses (44 per cent) experienced fraudulent incidents in relation to cyberattacks, or data breaches in the past year, marking a 39 per cent increase compared to 2022.
Prins said that there is no single solution to fraud defence, as a strategy will need to be tailored based on the business model and platforms used to make sales.
“With technology in place, such as machine learning tools, retailers should be able to recognise genuine customers and spot fraudulent activity across their sales channels.”
Moreover, he said that businesses are actively exploring how they can respond to the growing threat of cyberattacks, in order to protect both themselves and their customers.
About 68 per cent have actively considered changing their payments provider to one that can offer improved fraud defense mechanisms.
“Machine learning can help to analyse global data sets and therefore keep on top of new fraudulent activity, ensuring the business is protected in real-time,” Prins said.
A large proportion of retail businesses faced challenges and vulnerabilities related to their online security measures throughout the year.
The high prevalence of these attacks highlights the importance for retailers to prioritise and strengthen their cybersecurity practices to safeguard against potential threats and mitigate risks to their operations and customers.
