2017 True Cost of Fraud Study

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Fraudsters have online transaction channels and digital goods in their crosshairs. Are you protected?

The cost of fraud is higher for merchants selling digital goods and for online financial services and lending firms.

Every $1 of fraud losses actually costs (LexisNexis Fraud Multiplier℠):

Large online retailers, financial services and lending firms invest in fraud prevention

~85%

of these retailers use fraud mitigation solutions.

4 to 7

solutions are used on average.

BUT

advanced identity authentication & transaction verification solutions use is limited. 

Therefore, identity verification remains a significant problem for larger online retailers, financial services and lending firms.

Identity Verification Losses and Challenges

This leads to:

Delayed address verification

Excessive manual reviews

Delayed transaction confirmation

Customer Friction & Higher Fraud Costs

LexisNexis® Risk Solutions can help

The 2017 True Cost of Fraud℠ study for retail, eCommerce, financial services and lending firms found massive benefits when using a multi-layered solution.

Transaction Risk Scoring

ID Authentication

ID Verification

A Multi-Layered Solution

Using more layered solutions reduced successful fraud attempts**

And lowered actual cost for every $1 of fraud losses***

Data doesn't just support your business, it is your business. See what it takes to build a solid customer data foundation

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This research covers consumer-facing fraud methods and does not include information on insider fraud or employee theft. This LexisNexis Risk Solutions 2017 True Cost of Fraud study was conducted for LexisNexis by KS&R. It establishes the cost of fraud through different payment channels. LexisNexis and the Knowledge Burst logo are registered trademarks of RELX Inc. LexisNexis Fraud Multiplier is a service mark of RELX Inc. True Cost of Fraud is a service mark of LexisNexis Risk Solutions Inc. Copyright 2017 LexisNexis. All rights reserved. NXR12801-00-0817-EN-US

Sources:
* Mid/Large is defined as those generating $10M+ revenues annually
** Large is defined as those generating $50M+ revenues annually
*** Based on 2017 True Cost of FraudSM survey respondents, results can differ based on various other factors and are not a prediction or promise of the same outcomes.