Study Finds Fraud Rates and Data Breaches Could Increase for Retailers Next Year
For every $100 in fraudulent transactions, retailers incurred a "true" cost of $230, according to a new study by LexisNexi Risk Solutions. According to the study, retail merchants and financial institutions reported an overall decline in fraud rates and transactions while total retail sales rose. However, the research suggests that this is not the time to lose focus on fraud mitigation, as fraudsters' techniques continue to evolve as retailers enter new markets through international and mobile channels. Consumers also experienced a decline in fraud losses overall but the average time it took to resolve fraud issues rose by 57% and the out-of-pocket costs of fraud rose by $244.
The 3rd annual LexisNexis True Cost of Fraud Study, conducted by Javelin Strategy & Research, examines how fraud affects retail merchants, financial institutions and U.S. consumers, as well as identifies and quantifies the losses involved in a fraudulent retail transaction. For the first time this study also explores the ramifications of fraud for merchants with an international presence.