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
Deepfake Fraud Alert: How FinCEN’s Guidance Affects Banks
Even though deepfake-related fraud suspicious activity reports are on the rise, many financial institutions do not have a deepfake detection solution. FinCEN’s recent alert notes t...
2025 Fraud Management Trends
Innovation is the name of the game in 2025. Though the financial services industry is always working to develop the latest and greatest technology for fraud detection and preventio...
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-...
Make informed decisions in a digital financial world