The Future of eCommerce: Fight Fraud & Fuel Growth I Veriff

AI is everywhere, reshaping our world — but it’s a double-edged sword. As AI-powered fraud explodes, customers demand bulletproof security. That’s why top organizations are supercharging their defenses with advanced identity verification (IDV). It’s how they crush threats, build unbreakable trust, and ignite massive growth.

Ecommerce has become the foundation of global retail, offering unparalleled convenience and choice. But as sales exceed trillions of dollars worldwide, this rapid expansion has also attracted a growing threat: sophisticated online fraud. For businesses, navigating this landscape means balancing growth with robust security. Our latest report, “The Future of Ecommerce,” explores these challenges and offers a clear path forward.

This article will unpack the key highlights from the report, covering:

The alarming rise in ecommerce fraud and its financial impact.
How AI is both a threat and a powerful defensive tool.
Why customers are demanding stronger security measures.
How leading businesses are using identity verification (IDV) to build trust and grow.

The state of fraud in ecommerce

The data paints a stark picture: online fraud is increasing, and ecommerce is a prime target. Our research, which combines insights from the Veriff Identity Fraud Report, our Fraud Industry Pulse Survey, and our Fraud Index, reveals several critical trends.

Fraud by the numbers

Our analysis found a 21% year-over-year increase in online fraud. This isn’t just a background threat; it’s a direct and frequent problem. In 2024, a staggering 1 in 20 verification attempts were fraudulent.

The financial consequences are severe. Globally, 13% of fraud decision-makers reported that fraud costs their organization up to 20% of its annual revenue. This “fraud tax” is an unsustainable burden that directly impacts profitability and growth potential.

Ecommerce: A unique target

While all online sectors face risks, ecommerce is uniquely vulnerable. Our 2025 Fraud Report identified the ecommerce industry as the primary target for authorized fraud scams, suffering from these attacks at a rate 18 times the global average.

Authorized fraud occurs when a user is manipulated into completing a verification session for a fraudster. This can involve coercion or sophisticated digital interception, and its prevalence in ecommerce highlights the need for more advanced security than many platforms currently employ.

Beyond authorized scams, ecommerce businesses also contend with:

Account takeover fraud: Using stolen credentials to access user accounts.
Refund and return fraud: Abusing policies for financial gain.
Transaction fraud: Making purchases with stolen credit card information.

AI: A double-edged sword

Artificial intelligence is at the center of the modern fraud landscape. On one hand, fraudsters are leveraging AI to launch more sophisticated and scalable attacks. Our Pulse Survey revealed that 60.5% of respondents have seen an increased use of AI in attacks, including deepfakes and automated scripts.

On the other hand, AI is also the most powerful tool in the fight against fraud. Businesses are increasingly turning to AI-driven solutions to protect themselves and their customers. Almost two-thirds of US respondents (64%) are already using AI and machine learning for fraud prevention, with another 20% planning to adopt it within the next year. This technology helps by:

Identifying complex fraud patterns.
Accelerating the detection of sophisticated threats.
Automating customer verification processes.
Analyzing user behavior to spot unusual activity.

The identity verification advantage

As fraud becomes more complex, businesses are realizing that traditional security measures are not enough. The vast majority of fraud professionals (83%) have already adopted identity verification (IDV) and biometrics into their security frameworks. Furthermore, 81% plan to increase their reliance on this technology in the coming year.

Meeting customer expectations

This shift isn’t just an internal business decision; it’s driven by customer demand. Modern consumers expect and value strong security. Our Fraud Index found that over 75% of people believe robust security measures, such as showing an ID and taking a selfie, are important when signing up for an online marketplace.

As our Fraud Platform Lead, Ira Bondar, notes, “Organizations must deliver robust security, based on IDV and AI technology. If they don’t, they’re not just putting their companies at risk – they could drive away their customers.”

Organizations must deliver robust security, based on IDV and AI technology. If they don’t, they’re not just putting their companies at risk – they could drive away their customers.

Ira Bondar-Mucci Fraud Platform Lead Veriff

Building a “Trust Stack”

To foster confidence, ecommerce platforms need to build a “trust stack”, a layered approach to security and transparency. This stack is built on a foundation of identity verification, which ensures that users are who they claim to be. Other essential layers include transparent policies, strong consumer protections, and social proof in reviews and testimonials.

How Veriff empowers ecommerce leaders

Veriff provides the core technology to build this trust. Our AI-powered IDV solution helps businesses verify users at onboarding, fight sophisticated fraud, and ensure compliance with regulations like the INFORM Consumers Act.

We help answer three critical questions for any digital business:

Is this person real? Our technology verifies government-issued IDs and uses liveness detection to confirm a user’s real presence.
Is this person trusted? Our risk analysis tools, including CrossLinks, identify patterns across our network to flag potential fraudsters before they can cause harm.
Is this the same person returning? Our biometric authentication solution ensures that an account is always accessed by its legitimate owner.

Leading companies like TPC, the world’s largest marketplace for pre-owned bikes, and Trustpilot, a global leader in consumer reviews, use Veriff to automate verification, reduce fraud, and build a trusted environment for their users.

Secure your future

The ecommerce landscape is more competitive and challenging than ever. Businesses that prioritize trust and security are best positioned to protect their revenue, retain customers, and achieve sustainable growth. By investing in advanced identity verification and fraud prevention, you can stay ahead of threats and build an online marketplace that users can rely on.

Want to learn more about the specific fraud trends, customer expectations, and solutions shaping the industry? Download the full report.

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The future of ecommerce: Fight fraud and power growth with Veriff