From Login to Logout: A Comprehensive Guide to Ecommerce Fraud Prevention

The explosive growth in ecommerce has revolutionized how consumers shop and how businesses operate, creating a digital ecosystem brimming with opportunities—and risks. With online sales projected to reach $17.5 trillion globally by 2027, this digital boom has also sparked a parallel rise in e-commerce fraud.

According to industry estimates, global fraud losses could climb to a staggering $43.6 billion in the same period. However, the reality of ecommerce fraud goes beyond these direct losses; businesses face the unintended consequences of aggressive fraud controls that may lead to “false declines” and lost legitimate transactions, totalling an estimated $264 billion in revenue losses.

For years, companies focused on securing the transaction level at checkout, tightening authorization controls to prevent payment fraud. But as these defenses grew more robust, fraudsters evolved, targeting a softer, often-overlooked vulnerability: the online account. In a shift that’s fundamentally changing the fraud landscape, cybercriminals now concentrate on taking over customer accounts, exploiting breached personal information and weaknesses in loyalty programs, and using sophisticated methods to bypass traditional security checks. For consumers and businesses alike, the implications are substantial: compromised accounts, stolen identities, and a trust deficit that damages both brand loyalty and the customer experience.

To counter this emerging threat, today’s ecommerce fraud prevention strategies must expand beyond point-of-sale security and adopt a holistic approach centered on the online account. By protecting the user journey from account creation through to checkout, merchants can enhance security across digital touchpoints without disrupting customer satisfaction. This whitepaper dives into the new reality of account-focused fraud, examining why this shift has occurred, the potential impacts on businesses, and the strategic approaches that can help merchants protect online accounts in this dynamic landscape.

In this whitepaper, you’ll learn:

• The shift from transaction fraud to account-based fraud: Understand why fraudsters are focusing on online accounts and exploiting weak points in loyalty programs and identity misuse.
• Account takeover and its impact: See why 61% of identity misuse cases come from account takeovers and how this trend is reshaping fraud prevention strategies.
• Continuous risk assessment: Discover how to dynamically assess and mitigate risk across the user journey, maintaining strong security without disrupting customer experience.
• Next-generation fraud detection at the edge: Learn about the advantages of edge-based fraud prevention, deployed through CDNs, to streamline defenses and respond faster to threats.
• Behavioral and device analysis: Gain insight into how advanced behavioral analytics, coupled with device fingerprinting, can improve user verification and prevent fraud.

Protect your business and build customer trust with a seamless, secure online experience.
Download the whitepaper to understand the strategies and tools needed to stay ahead in today’s evolving fraud landscape.

About Darwinium
Darwinium is redefining e-commerce security with real-time, account-centric fraud prevention. Through continuous monitoring across the entire user journey, Darwinium helps businesses protect against fraud, scams, and identity theft while delivering a smooth, low-friction customer experience.

About Datos Insights

Datos Insights is an advisory firm providing mission-critical insights on technology, regulations, strategy, and operations to hundreds of banks, insurers, payments providers, and investment firms―as well as the technology and service providers that support them. Comprising former senior technology, strategy, and operations executives as well as experienced researchers and consultants, our experts provide actionable advice to our client base, leveraging deep insights developed via our extensive network of clients and other industry contacts.