latest edition Sift’s Digital Trust Index It describes an ever-evolving world of fraud, where different access points are used and old methods become less popular.
Fraud is increasingly committed early in the lifecycle as criminals attempt to compromise credentials and otherwise gain unauthorized account access. This login allows them to take advantage of saved payment methods, use loyalty balances and make fraudulent transactions. These transactions gain legitimacy because they appear to come from trusted users.
“Consumer experiences reinforce this trend.” the report states. “A significant number of users report experiencing both account takeover and payment fraud, demonstrating how attacks often progress through multiple stages of the digital customer journey.”
Global e-commerce fraud is predicted to grow at a 19% CAGR by the end of the decade; annual losses are expected to exceed $107 billion by 2029. Actual organizational costs are much higher as this does not include expenses related to investigations, dispute management, customer support and prevention. Add this in and fraud can cost a company almost 10% of its annual online revenue.
This comes amid a surge in digital activity. Total transaction volume increased by 18% compared to 2024; so more organizations are driving more activity across payments, accounts, and devices. Naturally, this situation also attracts the attention of criminals.
The data also shows that certain industries are more popular among account takeover targets. The main preferences of fraudsters are the internet and software programs, as well as digital commerce and travel platforms (due to the large number of accounts and stored credentials). Finance and fintech saw lower average rates. While social media and financial accounts are among the most important targets for consumers, food delivery, e-commerce and subscriptions also rank high.
“Authentication remains one of the most important defenses against credential-based attacks, but organizations need to balance stronger controls with a seamless customer experience.” the report states. “Across the Sift network, two-factor authentication (2FA) adoption fluctuated throughout 2025, declining in the middle of the year, then rising again towards the end. The increase later in the year suggests that many organizations are strengthening their authentication requirements following periods of increased account takeover activity.”
Consumers remain security conscious and many take extra steps to secure their accounts. More than 90% would accept extra verification if it would reduce risk.
Four industries saw payment fraud attack rates above 3%:
- Travel tickets 4.85
- Food/delivery 3.54
- Internet/software3.42
- Finance and fintech 3.04
Where are customers encountering payment scams?
- Banking/finance 41%
- Subscriptions 23%
- Social media 20%
Fraud rates by payment method
- Points/rewards 5.2
- Financing 4.3
- Cryptocurrency 4.2
- Digital wallet 3.8
The risks are high for companies running a successful fraud campaign. If 100 consumers are aggrieved, 52% will stop using that brand, and 37% will weigh the company’s reaction. Only 11% definitely prefer to use the brand.
Almost three in four people have stopped shopping online due to fear of fraud. About 23% are unfamiliar with AI agents, while 12% use them regularly.
