{"id":833054,"date":"2025-04-02T09:24:10","date_gmt":"2025-04-02T13:24:10","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/fraud-costs-surge-as-north-americas-ecommerce-and-retail-businesses-face-mounting-financial-and-operational-challenges\/"},"modified":"2025-04-02T09:24:10","modified_gmt":"2025-04-02T13:24:10","slug":"fraud-costs-surge-as-north-americas-ecommerce-and-retail-businesses-face-mounting-financial-and-operational-challenges","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/fraud-costs-surge-as-north-americas-ecommerce-and-retail-businesses-face-mounting-financial-and-operational-challenges\/","title":{"rendered":"Fraud Costs Surge as North America’s Ecommerce and Retail Businesses Face Mounting Financial and Operational Challenges"},"content":{"rendered":"
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PR Newswire<\/p>\n<\/p><\/div>\n

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\n LexisNexis\u00ae True Cost of Fraud<\/span>\u2122 Study Reveals US and Canada’s<\/span> Rising Fraud<\/span> Expenses, Customer Transaction Abandonment and the Struggle to Maintain Security Without Sacrificing Customer Experience<\/i>\n <\/p>\n

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\n ATLANTA<\/span>
\n <\/span>, April 2, 2025<\/span><\/span> \/PRNewswire\/ —\u00a0LexisNexis\u00ae Risk Solutions has released the fifteenth edition of its annual LexisNexis\u00ae True Cost of Fraud<\/span>\u2122 Study: Ecommerce and Retail Report \u2013 US and Canada Edition<\/i>. The report, based on a survey of 569 fraud<\/span> and risk executives, reveals that fraud<\/span> costs remain a growing challenge, with US merchants incurring an average cost of $4.61<\/span> for every $1<\/span> of fraud<\/span>, compared to $4.52<\/span> in Canada<\/span>.<\/p>\n

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\n \"LexisNexis
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Mobile transactions such as digital wallets, peer-to-peer payments and QR codes drive significant ecommerce fraud<\/span> costs, accounting for 33% of expenses in the US and 41% in Canada<\/span>. The US ecommerce segment reports the highest fraud<\/span> costs from digital transactions, with 53% tied to online purchases and 30% to mobile channels. Canadian ecommerce faces similar challenges, with 37% of costs linked to mobile transactions, highlighting the need for merchants to protect increasingly digital payment methods.<\/p>\n

\n Fraud<\/span> increases customer churn for 63% of respondents and forces businesses to allocate more resources to fraud<\/span> management. Sixty-four percent (64%) of respondents said fraud<\/span> hurts customer conversion rates, highlighting the challenge of balancing strong security with a seamless customer experience.<\/p>\n

A significant number of businesses are yet to adopt advanced fraud<\/span> prevention tools, such as AI models, behavioral biometrics and third-party detection systems. Forty-one percent (41%) of North American merchants still depend on manual processes to prevent fraud<\/span>, highlighting a widespread reliance on outdated methods.<\/p>\n

\n “Rising fraud<\/span> costs strain businesses financially and damage customer trust,” <\/i>said Maanas Godugunur, senior director, fraud<\/span> and identity, LexisNexis Risk Solutions<\/b>. “Staying ahead of fraudsters requires AI-powered fraud<\/span> detection and a multi-layered approach that identifies fraud<\/span> in real time while safeguarding the customer experience.”<\/i><\/p>\n

\n Key Findings from the True Cost of Fraud<\/span> Study: Ecommerce and Retail \u2013 US and Canada Edition<\/i>:<\/b>\n <\/p>\n