Merchants Losing $279 for Every $100 of Fraud: Report
Nearly one in three victims of identity fraud chose to avoid specific merchants after falling victim to fraud, according to the 5th Annual LexisNexis True Cause of Fraud study, which found that between 10 and 14 million U.S. consumers are victims of identity fraud every year.
According to the study, merchants not only incur the amount of charge-backs for which their company is held liable after a fraud incident, but they must also pay fees and interest to financial institutions and pay to replace or redistribute lost or stolen merchandise.