The Financial Impact of Fraud
- Date:October 25, 2016
- Author(s):
- Test
- Report Details: 35 pages, 19 graphics
- Research Topic(s):
- Fraud Management
- Fraud & Security
- PAID CONTENT
Overview
This report analyzes the findings of a new independent study that examines how the cost of fraud has significantly increased post-EMV when compared to 2015, and the associated challenges impacting a merchant’s ability to successfully grow their business.
Key findings:
- Fraud costs merchants more than 7.5% of their annual revenue.
- False positives account for 2.8% of revenue lost.
- Fraud and chargeback management consume between 14% and 23% of operational budget.
- Digital goods merchants suffered the worst losses, at 8.6% of revenue on average, but hybrid goods merchants faced similar costs at 8.1% of revenue.
Methodology
Vesta Corporation retained Javelin to conduct an independent online study in June 2016 of 500 e-commerce merchants earning $1 million or more annually, including 156 merchants selling only digital goods, 155 merchants selling only physical goods, and 189 hybrid merchants, selling both types of goods.
Download Whitepaper Form
Related content
Identity Verification Demystified: Share More, Secure More
Going too far to protect identity has put the financial services industry at increased risk. Reluctance to share critical signals across disparate platforms and sectors has pigeon-...
TikTok Users Encourage Check Fraud: Banks Must Address The ‘Glitch’
Users of TikTok and other social media platforms have accelerated check fraud by exploiting known gaps in check fraud detection processes. The viral TikTok Chase Bank “glitch” post...
The Pervasiveness of Check Fraud: Banks Are Paying the Price
Among fraud losses, check fraud ranks the highest within several financial institutions. Paper checks—containing an abundance of valuable sensitive information—are prime targets fo...
Make informed decisions in a digital financial world