True Cost Of Fraud - 2015 LexisNexis Risk Solutions Merchants Contend with Increasing Fraud Losses as Remote Channels Prove Especially Challenging True Cost Of Fraud - Introduction The annual LexisNexis® Risk Solutions study establishes the “true cost” of fraud as borne by U.S. merchants, along with key findings, and provides specific guidance for the industry. Recommendations for successfully mitigating these costs are presented based on an analysis of the underlying drivers of fraud, how different merchant segments are responding to these challenges, and through insight from financial industry leaders. The key question that this report addresses for merchants is, “How do I grow my business and manage the true cost of fraud while strengthening customer trust and loyalty?” Fraud definition For the purpose of this study, fraud is defined as the following: Fraudulent and/or unauthorized transactions Fraudulent requests for a refund/return; bounced checks Lost or stolen merchandise, as well as redistribution costs associated with redelivering purchased items (including carrier fraud) This research covers consumer-facing retail fraud methods and does not include information on insider fraud or employee theft. Merchant definitions LexisNexis Fraud MultiplierSM is the total amount of costs related to fees, interest, merchandise replacement and redistribution per dollar of fraud for which the merchant is held liable. Small merchants earn less than $1 million in average annual sales. Medium-size merchants earn $1 million to less than $50 million in average in annual sales. Large merchants earn $50 million or more in annual sales. International... More