The 11th annual LexisNexis® Risk Solutions 2020 True Cost of FraudTM Study: E-commerce/Retail Report surveyed risk and fraud executives at e-commerce and retail companies in the US and Canada and reveals that fraud continues to increase and most acutely affects mid- to large-sized e-commerce retailers and merchants. Retailers experienced increased online and e-commerce fraud volumes and monetary losses correlating to a mass shift to online and mobile transactions during the COVID-19 pandemic.
The result of increased fraud volumes translates into a 7.3% increase in the cost of fraud year-over-year for US e-commerce and retail merchants. The LexisNexis Fraud Multiplier℠ shows that every $1 lost to fraud now costs companies an additional $3.36 compared to $3.13 in 2019 and $2.40 in 2016—an increase of $0.96 over five years. US costs are significantly higher than the cost that Canadian retailers face per $1 lost to fraud at $2.87.