80 billion Euros lost to online fraud across physical and digital goods, and e-ticketing in 2021, reveals Fraugster’s new Payment Intelligence Report


Fraugster, a payment intelligence company which is the first player to offer compliance, chargeback protection, risk management solutions and credit scoring via one AI platform and one integration, today announced the publication of its first Payment Intelligence Report 2022. This provides insight into key Compliance, Fraud Risk and Revenue Uplift trends in the market. Information from 60B data points and 80M individual transactions in 2021 were analyzed by the Fraugster team. Findings highlight the latest fraud tactics being deployed against Payment Service Providers (PSPs), Buy Now Pay Later (BNPL) suppliers and Merchants in Travel, Physical and Digital Goods, challenges and opportunities for BNPL players, chargeback trends, popular fraud types, PSD2 impacts, and future trends for 2022 and beyond.

Research highlights:

Fraud attack findings

  • 109% Increase in Identity fraud
  • 70% rise in Gift Card fraud
  • 52% Increase in Account Takeover (ATO ) attacks

Checkout/Basket facts

  • Average Order Value by Vertical: BNPL €146, Travel €580, Physical Goods: €147, Digital Goods €20
  • Preferred shopping times based on the number of orders

Sanction information

  • Top sanctioned countries: RussiaIranSyria and North Korea
  • Total AML fines in 2021 amounted to € 2.5B, with over 80 institutions being fined.

Chargeback data 

  • 46% of the total chargebacks were filed within a span of 60 days
  • 15% (pre-pandemic) to over 50% (pandemic peak) increase in angry chargebacks
  • Average chargeback by value by vertical: Travel € 710, Gaming: €25, Fashion: €220
  • Total cost of chargeback to the merchant is 2.9x the value of chargebacks

BNPL snapshot

  • Bad debts as a percentage of total outstanding debt for Credit Cards stood only at 5.30% compared to an estimated 9.55% for Buy Now Pay Later providers.
  • 62% growth of new user group adopting BNPL (18-24 age bracket)

3DS data

  • 20-50% of a merchant’s transaction flow is redirected to frictionless 3DS
  • Decrease in Issuer declines post 3DS, compensates for customer drop-offs, therefore, balancing overall acceptance rate.

Vertical quick dives

  • Airlines lost over €6.5B to fraud in 2021, which is equivalent to the global average cost of 24,000 flight tickets with fraud losses amounting to 1.5% of total global airline revenue.
  • Total direct fraud losses for digital goods (consisting of gaming, gambling and gift cards) amounted to €3.58B in 2021, with over €13.72B worth of genuine transactions lost due to false positives.
  • Fashion had the highest percentage contribution to revenue i.e., 28%, followed by home and living (22%), electronics (19%), food and personal care (18%) and furniture (13%). Nearly €69.65 B from the total revenue for physical goods was lost to fraud in 2021.

Christian Mangold, Fraugster CEO says “We are excited to publish the first edition of our Payment Intelligence Report 2022. By researching our own data we gleaned information about Compliance, Fraud Risk and Revenue Uplift that will enable us to make adjustments where required to ensure that our merchants can minimize fraud and maximize revenues.”


Fraugster and IXOPAY team up to future proof payments and secure BNPL providers, Marketplaces and iGaming companies with powerful AI fraud prevention


Leading payment orchestration platform, IXOPAY, partners with AI fraud prevention specialist, Fraugster to give online merchants easy access to a range of fraud prevention, compliance and revenue uplift solutions via a single API. The rapid growth in e-commerce means merchants demand more flexibility from their payment and fraud prevention partners, with the ability to access new solutions as their businesses expand into new regions and payment methods.

This partnership will enhance the solutions available to a range of merchants and payment companies. BNPL providers addressing complex fraud use cases, like Synthetic Identity Fraud, will have access to device intelligence and linking analysis to mitigate this risk. Similarly, online Marketplaces and iGaming companies will be able to go-live faster without historical data and benefit from full chargeback protection via a no-code integration.

IXOPAY CEO Nathalie Siegl says: “Payments are a mission critical part of any business. Our goal is to give clients a streamlined experience and access to the best options available, from the best payments processing options per country to industry leading risk management. Partnering with Fraugster is an organic step; their advanced AI technology provides unparalleled fraud protection without adding complexity or sacrificing user experience.”

Fraugster Co-CEO, Christian Mangold says: “We are delighted to be partnering with IXOPAY who share our belief that the industry needs to unite against fraud, and provide more flexible and scalable solutions to customers. Too many merchants I speak with tell me that they have multiple integrations with different vendors to cover risk, fraud and compliance topics. This creates complexity and drives up costs. It should not be that way. Our customers will be able to simplify things by picking and choosing from multiple solutions, including full chargeback protection, via one integration.”