Fraud Attacks, Losses and True Cost of Fraud All Increased in 2021

According to a recent study, eCommerce merchants in the US have experienced a 140 percent increase in fraud attacks relative to 2020, while every dollar associated with missed fraud costs organizations $3.60 on average, up 15 percent from before the pandemic.

This is according to the Lexis Nexis True Cost of Fraud study, which surveyed nearly 1,000 eCommerce merchants in the United States. The study also found that the mobile channel is a growing source of fraud for US eCommerce merchants, contributing to 39 percent of the total fraud cost in 2021 compared to just 5 percent in 2020.

Merchants show that they are taking many measures to mitigate fraud. Online retailers in the US are using 8 fraud prevention tools or solutions on average, yet fraud losses continue to grow. Along with the 140 percent increase in fraud attempts between 2020 and 2021, missed fraud or successful fraud attempts increased by 52 percent.

For More Information:

U.S. and Canadian Retail Fraud Up 15% from Pre-Pandemic Period According to LexisNexis Risk Solutions True Cost of Fraud Study