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FRAUD INCREASING FORmCOMMERCE MERCHANTS
This research covers consumer-facing retail fraud methods and does not include information on insider fraud or employee theft. This 2014 LexisNexis® True Cost of Fraud Mobile Study was conducted for LexisNexis by Javelin Strategy & Research. It establishes the cost of fraud through the mobile payment channel. LexisNexis and the Knowledge Burst logo are registered trademarks of Reed Elsevier Properties Inc., used under license. True Cost of Fraud and Fraud Multiplier are service marks of LexisNexis Risk Solutions Inc. All other trademarks are owned by their respective organizations. Copyright 2015 LexisNexis. All rights reserved. NXR11004-00-0115-EN-US
LexisNexis® Fraud MultiplierSM calculates the cost of fraud shouldered by merchants. For every $1 in fraud loss, the LexisNexis® Fraud MultiplierSM calculates the cost to the merchant.
Mobile Payments Pose Significant Risk for mCommerce Merchants
Total Transactions
14%Fraudulent
Transactions21%
Three Reasons for Fraud Risk
mCommerce Merchants
All Merchants
Track mobile fraud separately from online fraud
Review priorities for the implementation of fraud prevention solutions
Fraud Costs Differ Between Purchasing Channels
2013 2013
2014 2014
$3.10
$2.62
$2.83
$3.34
1Proliferation of Personal Identifiable Credentials
Recommendations for mCommerce Merchants
3
2
Large Variety of Channels* Accepting Payments
Frequent Merchant Data Breaches
This is the only way to accurately assess the need for fraud solutions designed for the mobile channel
Merchants need to educate themselves on solutions geared toward preventing fraud in the mobile channel
Buy
Every $100of fraud through mobile channelscosts merchants
$334Percent that are mobile transactions
Lexisnexis Fraud Multipler For Mobile Purchases
Lexisnexis Fraud Multipler For Online Purchases
Number of channels
Risk Solutions
2.6
4.5
*POS, browser, app, phone, mail, other