Ecommerce Fraud Statistics: Key Trends & Insights for 2025

Introduction

E-commerce fraud is no longer a back-office concern. In 2025, it stands as one of the most pressing challenges facing online retailers and digital-first brands. With the rise in global ecommerce activity, fraudsters are becoming more innovative, leveraging AI, automation, and human psychology to exploit vulnerabilities in digital payment ecosystems. From fake chargebacks to AI-powered deepfakes, ecommerce fraud has escalated into a strategic threat that demands urgent attention.

For ecommerce businesses, merchants, and online sellers, understanding ecommerce fraud statistics is the first step in building resilient fraud management strategies. This article unpacks key data and trends to equip businesses with actionable insights for better fraud prevention in 2025. The data will also help them have a fraud prevention strategy and prevent online fraud.

Understanding Ecommerce Fraud: What it is and how it works

Ecommerce fraud refers to any deceptive or malicious activity targeting online merchants and consumers to manipulate transactions or steal funds, goods, or data. The fraud landscape has evolved beyond stolen credit cards to include identity theft, refund fraud, phishing, and AI-driven deception. As ecommerce adoption grows, so do the methods used by bad actors.

Types of ecommerce fraud

Let's examine the various types of e-commerce fraud in 2025.

• Phishing Attacks: Fraudsters impersonate legitimate marketplaces or online retailers to lure consumers into sharing personal and payment data through deceptive emails or websites.

• Identity Theft: Bad actors use stolen identities to place fraudulent transactions or open new accounts using someone else’s credentials.

• Account Takeover Fraud: This occurs when hackers gain access to customer accounts and initiate unauthorized online purchases. It is a growing concern in 2025.

• Chargeback Fraud: A deliberate act where a buyer disputes a legitimate transaction to claim a refund after receiving the product.

• Friendly Fraud: A customer disputes a transaction without malicious intent, often due to confusion or regret; however, it is increasingly being used as a loophole.

• Refund Fraud: Consumers submit fraudulent refund requests by falsely claiming that a product was not delivered or was unsatisfactory.

• Triangulation Fraud: A complex scam where fraudsters set up a fake storefront, take orders using stolen credit cards, and have legitimate merchants fulfil the purchase.

Ecommerce fraud statistics in 2025

In 2025, e-commerce fraud has reached an unprecedented level of complexity, scale, and cost. The following data points reveal the financial, operational, and reputational implications that fraud poses to e-commerce businesses. These stats can help companies boost their eCommerce fraud prevention efforts.

1. Ecommerce companies are estimated to lose $48 billion to fraud annually

This staggering loss represents a combination of payment fraud, policy abuse, chargebacks, and operational disruptions. E-commerce merchants must identify fraud patterns in real-time and develop layered prevention frameworks that integrate fraud detection tools, risk-scoring engines, and proactive alerts to reduce the impact of loss. (Source)

2. Every $100 in fraudulent orders costs businesses $207

Fraud costs extend beyond the original transaction value. They include overheads like shipping, restocking, and customer support expenses. For online merchants, this statistic underscores the hidden costs of fraudulent transactions and why early detection matters more than reactive handling. (Source)

3. The ecommerce fraud detection and prevention market is worth $57.51 billion in 2024

This valuation indicates that merchants worldwide are increasing their investments in fraud prevention tools, including machine learning, behavioral analytics, and AI-driven risk intelligence. Businesses must assess their current stack and consider future-proofing their systems to remain competitive and secure. (Source)

4. Online payment fraud will cost businesses $206 billion globally by 2025

This projection of online payment fraud worldwide encapsulates the scale of risk across global ecommerce operations. Companies must factor in not just prevention, but also fraud cost recovery, compliance with payment regulations, and minimizing friction for legitimate customers to help them during online payment scams. (Source)

5. Ecommerce merchants lose 2.9% of global revenue to fraud

Even a modest percentage loss translates to millions for mid-sized or enterprise merchants. Understanding fraud hotspots can help reduce fraud losses without impacting genuine transactions. These fraud hotspots include high-risk geographies, new user accounts, or first-time buyers. (Source)

6. Domestic ecommerce orders account for 2.6% of all fraud cases

While international orders get more scrutiny, domestic orders are equally vulnerable. Many fraudsters now operate locally, using stolen credit card information and compromised credentials to exploit gaps in fraud detection thresholds. (Source)

7. International ecommerce orders see a 3.0% fraud rate

This rate is consistent with domestic orders, but international cases often involve added complexities such as currency mismatches, unfamiliar device types, and higher chargeback risk. Merchants should implement geo-verification, multi-currency risk assessment, and dynamic rule engines to mitigate threats. (Source)

8. Ecommerce merchants spend 11% of annual revenue on fraud management

This investment encompasses the costs of utilizing fraud prevention software, internal fraud teams, external audits, and lost revenue. By refining fraud strategies, businesses can lower operational costs while improving fraud detection accuracy. (Source)

9. The average ecommerce company uses 5 fraud detection tools

Multi-tool integration is crucial in countering evolving fraud patterns. These may include identity verification services, credit card verification tools, behavioral monitoring, and device fingerprinting, which together offer stronger fraud coverage.

10. 43% of ecommerce consumers have experienced payment fraud

This erosion of consumer trust can lead to increased cart abandonment and churn. Businesses must not only prevent fraud but also communicate security efforts transparently to reassure customers during online purchases. (Source)

11. Friendly fraud accounts for 18% of all ecommerce disputes

This often-overlooked issue impacts both revenue and resource allocation. By combining customer education, real-time order tracking, and strong documentation practices, ecommerce businesses can reduce the incidence of friendly fraud. (Source)

12. 25% of ecommerce shoppers request refunds but keep the product

Refund fraud and refund abuse strain return systems and inventory planning. Merchants can mitigate losses by implementing stricter return verification and tracking buyer behavior patterns across accounts. (Source)

13. 75% of ecommerce companies plan to increase their fraud prevention budgets

Growing fraud complexity is driving higher budget allocation. From investing in AI-based fraud prevention tools to team training and policy development, businesses are recognizing the need for proactive strategies. (Source)

14. 59% of ecommerce companies report a rise in online payment fraud

The increasing adoption of digital wallets and BNPL services creates new attack surfaces. Businesses must apply fraud risk scoring, fraud orchestration platforms, and ongoing risk modeling to stay ahead of this trend. (Source)

15. Account takeover is cited as a top concern by 21% of merchants

Account takeover can be particularly damaging, leading to stolen loyalty points, fraudulent purchases, and reputational loss. Multifactor authentication, CAPTCHAs, and login pattern tracking can prevent account takeover fraud effectively. (Source)

16. Phishing is the most common form of ecommerce fraud

With over 43% of merchants affected, phishing remains the gateway to many fraud types, including identity theft and account takeover. Mitigation involves consumer education, phishing simulation, and real-time site spoof detection.

17. Machine learning is used by 48% of merchants for fraud prevention

ML tools learn from historical and real-time behavior to detect anomalies. Their advantage lies in their adaptive capabilities, making them ideal for detecting fraud on high-transaction e-commerce platforms. (Source)

18. Luxury goods and collectibles saw an over 100% rise in fraud

High-value verticals attract sophisticated fraudsters. Merchants must implement additional verification for high-ticket items, such as biometric authentication and manual review protocols. (Source)

19. 72% of merchants are aware of policy changes for compelling evidence

Understanding these policies enables merchants to respond effectively to chargeback fraud. Compiling internal customer order history, delivery confirmation records, and buyer communication records helps resolve disputes. (Source)

20. 9 in 10 merchants use compelling evidence to dispute chargebacks

This highlights a maturing fraud management culture where merchants actively defend revenue. Companies must embed structured evidence tracking and real-time documentation into post-order workflows. (Source)

21. CAPTCHAs are used by 59% of merchants to prevent account takeover

While not foolproof, CAPTCHAs serve as a frontline defense against automated attacks. Combined with IP monitoring and behavioral biometrics, they reduce the success rate of credential-stuffing attacks. (Source)

22. 65% of Gen Z and Millennial shoppers admit to committing refund abuse

This behavior-driven fraud trend reveals how consumer psychology affects risk. Policy optimization, targeted education, and fraud profiling can help reduce abuse without alienating genuine buyers. (Source)

23. Women report more scams, and men lose more money on average

This demographic insight enables businesses to tailor their fraud communication and prevention messaging more effectively, aligning it with behavioral and transaction patterns. (Source)

24. Online shopping scams account for 24% of scam victims

With shopping scams leading all other online scams in 2025, ecommerce companies must prioritize awareness campaigns and more transparent digital communication with ecommerce shoppers. (Source)

25. AI is increasingly being used to commit ecommerce fraud

Deepfake videos and synthetic identity creation are outpacing rule-based detection systems. Merchants must upgrade to fraud detection tools powered by machine learning and anomaly detection algorithms to stay resilient. (Source)

ClickPost: Elevating fraud-resilient fulfillment for digital retailers

As ecommerce fraud becomes increasingly sophisticated, businesses must address vulnerabilities beyond just the checkout process. Logistics is a critical touchpoint in fraud exposure. ClickPost delivers end-to-end logistics visibility that not only streamlines operations but also prevents fraud across supply chains.

Why ClickPost matters in the age of fraud:

• Real-Time Tracking: Prevent delivery-related fraud and enhance trust with transparent tracking.

• NDR Management: Stop refund abuse and false delivery claims with intelligent resolution systems.

• Courier Allocation Logic: Detect anomalies with geo-behavior patterns and delivery inconsistencies.

• Order Reconciliation: Maintain accurate records to produce compelling evidence in dispute scenarios.

ClickPost transforms post-purchase experiences into fraud-resistant journeys. Book a demo to explore how ClickPost helps ecommerce businesses protect their profits and customers with smart logistics automation.

Conclusion: Combating commerce fraud begins with clarity

The digital storefront may have no walls, but it needs strong defenses. As ecommerce fraud evolves from simple scams to AI-led invasions, every piece of data shared in this article becomes a checkpoint for strategic response. In 2025, businesses cannot afford to treat fraud management as an afterthought. It must be interwoven with everything, from checkout processes and identity verification services to reverse logistics and dispute handling.

Yet, this is not just about protection. It is also about growth. Trust fuels ecommerce, and preventing online payment fraud means more repeat buyers, stronger brand equity, and lower customer churn. Businesses that lead in fraud prevention will lead in ecommerce itself. Let the statistics inspire action, not fear.