Issue Statement 2 : Online Payment

Online Payment Fraud

Several prevalent fraud tactics contribute to these losses:

Card-Not-Present (CNP) Fraud: Occurring in online environments without the physical card, this accounts for approximately 65% of fraud losses [3].

Authorized Push Payment (APP) Fraud: Victims are deceived into authorizing payments to fraudsters, representing a significant and growing threat (e.g., ≈40% of UK fraud) [4].

Friendly Fraud: Consumers receive goods or services but then dispute the charge and request refunds, accounting for 70–80% of all chargebacks [5]

Data Breaches and Unauthorized Use: Hacking, phishing, and widespread leaks of card data lead to billions in losses globally, with liability increasingly shifted towards merchants by issuers and payment networks[6],[7],[8],[9].

These online payment fraud issues are not merely isolated transaction security concerns but represent structural risks undermining the foundational trust of the entire financial ecosystem.