Our annual LexisNexis True Cost of Fraud study offers important insights into the profound effects of fraud on merchants, consumers and financial institutions. It establishes the actual cost of fraud as witnessed by merchants and provides key findings and specific recommendations for the industry.
The study includes a survey of over 1,000 risk and fraud executives in ecommerce and multichannel retail organizations, and details current trends in retail fraud and the effects these have on the ability of merchants of all sizes to prevent and catch fraudulent transactions.
A central feature of the report, the LexisNexis Fraud Multiplier℠, estimates the total amount of loss a merchant incurs, based on the actual dollar value of a fraudulent transaction. This year, every dollar of fraud cost merchants $2.40, up from $2.23 a year ago, according to the Fraud Multiplier tool. Also, the report finds that the volume of fraud has risen sharply in the last year—from a monthly average of 156 to 206 successful fraudulent transactions, and from 177 to 236 prevented fraudulent transactions—while the level of fraud as a percentage of revenues has also inched upward from 1.32 percent to 1.47 percent.
Find out what’s driving rising fraud losses and associated costs—and how to protect your bottom line.