E-Commerce Fraud Statistics: The $48 Billion Problem Every Online Business Faces

Here’s a reality check that might make you uncomfortable: ecommerce fraud is costing businesses $48 billion annually, and it’s only getting worse. Whether you’re managing a small online store or scaling a massive enterprise, fraud isn’t just a “big company problem” anymore—it’s a universal threat that’s quietly draining profits from businesses of every size.

Global e-commerce companies lost an estimated $48 billion to online payment fraud in 2023, up from $41 billion in 2022. But here’s the kicker: for every $100 in fraudulent orders, businesses actually lose an average of $207 when you factor in wholesale costs, shipping, chargeback fees, and processing.

If you’re in sales or business development, understanding these ecommerce fraud statistics isn’t just about knowing numbers—it’s about recognizing one of the biggest pain points your prospects face daily. Let’s dive into the data that’s reshaping how online businesses think about security and growth.

Top E-Commerce Fraud Statistics That Will Shock You

The numbers behind ecommerce fraud paint a picture that’s both alarming and eye-opening. Let’s start with the big picture before diving into the specifics.

The Mind-Blowing Financial Impact

Recent projections show that ecommerce fraud losses could reach $107 billion by 2029, representing a staggering 123% increase from current levels. Between 2023 and 2028, merchants are expected to lose over $362 billion globally to online payment fraud.

But it’s not just the absolute numbers that matter—it’s what they represent for everyday business operations:

$207 – The real cost for every $100 in fraud (including fees, shipping, and chargebacks) 2.9% – Average percentage of global revenue lost to ecommerce fraud in 2022 11% – Average yearly revenue that merchants spend managing fraud $57.51 billion – Size of the fraud detection market in 2024, expected to reach $186.82 billion by 2030

The Harsh Reality for Different Business Sizes

Here’s something that might surprise you: smaller businesses take a harder hit from fraud than larger ones, losing 57% more revenue on average. For small firms, this translates to approximately 2.2% of their total revenue lost annually—which could mean $200,000 for a business with $9 million in revenue.

Meanwhile, mid-sized companies lose about 1.6% of revenue to fraud, compared to 1.4% for larger enterprises. The proportional impact makes fraud prevention especially critical for growing businesses.

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Regional Fraud Hotspots

North America accounts for over 42% of global e-commerce fraud by value, making it the highest-risk region globally. Europe faces significant challenges too, with Germany and France being the hardest hit within the continent.

Regional spending on fraud management tells its own story:

• North America & Europe: 10% of total revenue on fraud management
• APAC countries: 15% of revenue on fraud management
• Latin America: 19% of revenue managing fraud (the highest globally)

In Latin America specifically, businesses lose about 20% of all e-commerce revenue to fraud, with an average of 3.7% of all e-commerce orders being fraudulent.

General E-Commerce Fraud Statistics: Understanding the Broader Picture

To truly grasp the scope of ecommerce fraud, we need to understand how it fits into the larger e-commerce ecosystem that’s rapidly expanding worldwide.

E-Commerce Growth vs. Fraud Growth

Global e-commerce sales reached $5.58 trillion in 2023, with projections to hit $6 trillion in 2024 and $6.42 trillion in 2025. E-commerce is expected to account for 19.9% of sales worldwide in 2024, growing to 20.5% in 2025.

Unfortunately, as online shopping explodes, so do the opportunities for fraudsters. The concerning reality is that fraud often grows faster than the legitimate market insights would suggest, especially when accounting for the true cost multiplier effect.

The Trust Crisis

Consumer confidence is taking a hit. Seven out of ten global e-commerce users now favor payment methods that don’t share their data with merchants, while almost 60% were more concerned about online payment fraud than the previous year.

This trust crisis has real business implications. In the United States, approximately eight in ten consumers would shop online more often if provided better protection against fraud threats.

Industry-Specific Impact

Certain sectors are getting hit harder than others. Fraud cases were up 106% for collectibles, 104% for luxury goods, and 42% for leisure and outdoor products. These high-value, easily resellable items naturally attract more fraudulent activity.

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Common E-Commerce Scam Tactics: The Fraud Playbook

Understanding how fraudsters operate is crucial for both prevention and for sales professionals who need to speak intelligently about these challenges with prospects.

Friendly Fraud: The “Customer” Becomes the Criminal

Friendly fraud accounts for a massive 45% of all e-commerce fraud globally in 2024. This happens when customers make legitimate purchases but then dispute the charges with their bank, claiming they never received the item or didn’t authorize the transaction.

The numbers are staggering:

• Over 60% of merchants reported an increase in First-Party Misuse in the past year
• 58% of e-commerce merchants believe that attempting to obtain free products is a key driver behind these claims
• 23% of consumers have admitted to disputing purchases as fraud even though they received a satisfactory item

Account Takeover: When Your Customer’s Account Becomes a Weapon

Account takeover attacks saw a dramatic 282% increase during the COVID-19 pandemic, and the threat remains significant. Currently, 51% of e-commerce companies have noticed an increase in account takeovers recently.

ATO losses hit an estimated $11.4 billion in 2021, making this one of the most financially damaging fraud types for businesses to combat.

Phishing: The Classic That Still Works

In 2024, phishing was the third most common type of fraud faced by online merchants globally, affecting 42% of them. According to GreatHorn, 69% of organizations were victims of spear phishing in 2021.

Returns and Refund Abuse: Gaming the System

Returns fraud and abuse accounted for 13.7% of all returns in 2023, amounting to over $100 billion in losses for retailers. One particularly concerning trend: 25% of e-commerce shoppers ask for a refund even though they plan on keeping the product.

Wardrobing has become epidemic, with 30% of shoppers who admit to wardrobing doing it on a weekly basis.

Promotion and Loyalty Abuse

52% of e-commerce companies report that promotion abuse has increased. Loyalty fraud now accounts for as much as 31% of all fraud attempts against online merchants, with global losses from rewards program fraud estimated between $1 billion and $3 billion annually.

The AI Revolution in Fraud

Fraudsters are increasingly leveraging artificial intelligence to enhance their schemes. Reports indicate the discovery of over 50 fake AI apps scamming users through phishing attacks to capture personal and payment data.

The APAC region saw a reported 194% rise in deepfake fraud during 2024, highlighting how AI is being weaponized against businesses and consumers.

Triangulation Fraud: The Complex Web

Triangulation fraud is estimated to account for about 26% of all e-commerce fraud. This sophisticated scheme involves fraudsters creating fake storefronts, collecting customer payments, then using stolen credit cards to purchase items from legitimate merchants, leaving the legitimate business to deal with chargebacks.

Merchants lose between $660 million and $1 billion monthly to triangulation fraud, making it one of the most expensive fraud types to combat.

FAQ: Your Quick Guide to E-Commerce Fraud