Despite these losses, only half (51 per cent) say their organisations are prioritising protecting online financial transactions, said the study titled 'The Real Cost of Online Fraud.'

More than 600 analysts and senior leaders were surveyed in key verticals including retail, travel, hospitality and entertainment. Besides, respondents indicated that Covid-19 has seriously affected their organisations' ability to protect themselves from online fraud.

Prior to Covid-19, about 45 per cent of respondents rated their effectiveness in reducing online fraud as high or very high. Today, only 34 per cent of respondents rate their effectiveness as high or very high. Many businesses have seen the rise in e-commerce as an opportunity to reprioritise their digital transformation initiatives.

"While digital transformation is crucial to the success and longevity of a business, 81 per cent of respondents indicated their organisations are more vulnerable as a result of digital transformation," said the study. While this rise in e-commerce and digital payments has opened up new revenue potential for merchants, it has also led to an increase in online scams, sophisticated attempts at fraud by malicious actors and resulting new operating risks for merchants, it added.