Report: Online Fraud Down but Avg. Value Up
Sept. 15, 2011
For every $100 in fraudulent transactions, retailers incurred a “true” cost of $230, according to a new study commissioned by LexisNexis Risk Solutions. According to the study, conducted by California-based Javelin Strategy and Research, while fraud rates and the number of fraudulent transactions are in decline, the average dollar value of a completed fraudulent transaction is higher than last year, indicating the nature of transactions is becoming more severe. “It is true there has been industry progress in fraud mitigation, however fraud continues to cost retail merchants over $100 billion annually and consumers are feeling the increased affects of fraud,” says Jim Rice, director of market planning for retail and e-commerce markets, LexisNexis Risk Solutions. “While e-commerce, mobile payments and international commerce provide the retail industry with the most growth opportunities, they also present the greatest challenge to fraud prevention.” The study surveyed more than 1,000 risk and fraud decision-makers and influencers. The full report is available at http://www.lexisnexis.com/risk/2011FraudStudy .