The study surveyed risk and fraud executives at ecommerce and retail companies in the US and Canada and it reveals that fraud continues to increase and affects mid to large-sized ecommerce and retailers. The result translates into a 7.3% increase in the cost of fraud year-over-year for US ecommerce and retail merchants.
The LexisNexis Fraud Multiplier – the total amount of costs related to fees, interest, merchandise replacement, and redistribution per dollar of fraud for which the merchant is held liable – shows fraud now costs companies USD 3.36 for every dollar lost to fraud. In comparison, there was USD 3.13 in 2019 and USD 2.40 in 2016. US costs are significantly higher than the cost that Canadian retailers face per USD 1 lost to fraud at USD 2.87.
Among The True Cost of Fraud Study’s key findings and trends, one encounters:
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