Retail Fraud Taking a Greater Financial Toll, Study Finds

Retailers incurred $2.70 in costs for every dollar in fraudulent transactions, according to the fourth annual LexisNexis True Cost of Fraud Study. The study uses the LexisNexis Fraud Multiplier, which calculates the "true cost" of fraud incurred by merchants. That cost incorporates chargebacks for merchandise, the fees and interest to financial institutions and payment processors as well as any replacement, redistribution or restocking fees incurred by a merchant. The study also reveals that retailers who offer mobile payments, e-commerce and sell internationally are becoming greater targets for fraud.