HONG KONG — From June to August 2019, an average of approximately $160,000 in successful monthly fraudulent transactions was recorded by retail, e-commerce, and financial service businesses in APAC, according to the 2019 LexisNexis® Risk Solutions True Cost of Fraud™ APAC Study released today.
In a survey of 360 businesses across Singapore, Indonesia, Malaysia, and the Philippines, the study found that there was an average of almost 400 successful monthly fraudulent transactions in the region, with each fraudulent transaction costing businesses nearly three and a half times the amount of the lost transaction value. Costs incurred by businesses for fraudulent transactions include, but are not limited to, the lost transaction value for which firms are held liable, costs for replacing or redistributing lost or stolen merchandise, fees and interest paid to financial institutions, labor costs for investigation, and external costs for expense recovery.
“Fraud is a significant issue for APAC businesses, especially for the financial services industry and for businesses that engage in mobile commerce,” said Alisdair Faulkner, chief identity officer, Business Services, LexisNexis Risk Solutions. “The digital space is where the battle against fraud is heating up, with our report highlighting identity verification as a key challenge for digital businesses and businesses selling digital goods, which accounts for nearly half of all retail and e-commerce fraud losses.”
The study provides a snapshot of current trends in fraud in the retail, e-commerce and financial services markets in each country. It also highlights key pain points related to adding new payment mechanisms, transacting through online and mobile channels and expanding internationally.
Key findings of the 2019 LexisNexis Risk Solutions True Cost of Fraud APAC Study:
Register here for our webinar, “Fraud and Business Losses – How Bad Can It Be?” on Wednesday, 30 October 2019, when Cameron Church, director, Fraud and Identity Management, LexisNexis Risk Solutions, will take an in-depth look at the 2019 LexisNexis Risk Solutions True Cost of Fraud APAC Study.
About LexisNexis Risk Solutions
LexisNexis Risk Solutions harnesses the power of data and advanced analytics to provide insights that help businesses and governmental entities reduce risk and improve decisions to benefit people around the globe. We provide data and technology solutions for a wide range of industries including insurance, financial services, healthcare and government. Headquartered in metro Atlanta, Georgia, we have offices throughout the world and are part of RELX (LSE: REL/NYSE: RELX), a global provider of information and analytics for professional and business customers. For more information, please visit www.risk.lexisnexis.com and www.relx.com.