Introduction

The online payment transaction system using plastic money cards offers several benefits to human life, including enhanced user convenience, time efficiency, and heightened security. It also comes with negative aspects regarding fraudulent transactions and creates a challenge worldwide for all businesses involved in online transactions. According to the Nilson Report, in 2022, the global economy experienced a loss of $33.45 billion due to fraudulent activities associated with plastic money card transactions and will reach $43.47 billion by 2028. The fraudulent figure of loss is increasing every year. Therefore, there is a need to continuously enhance the security measures of the existing online payment transaction system, including current trends and technologies, to combat fraudulent transaction activities. This chapter aims to present issues and challenges associated with fraudulent online payment transactions and propose remedial solutions to mitigate fraudulent transactions. This chapter provides a concise overview of the historical development of the online payment transaction system involving plastic money cards, alongside an examination of online payment transaction fraud. Additionally, this chapter explores the scope of the research for the implementation within the online financial payment field and other fields requiring robust security measures.