Returns Fraud Hurting Online Retailers: Study
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by Erin Lynch
The National Retail Federation estimates that nearly $9 billion was lost by merchants in returns fraud in 2012. And according to a report from ThreatMetrix, online fraud resulted in about $3.5 billion in lost revenue in North America last year. Which makes it imperative, now more than ever, that retailers to step up and strengthen their cybersecurity.
According to the LexisNexis 2012 The Cost of Fraud study, retailers in 2011 were paying, on average, $2.30 per every $1 lost in fraud. In 2012, retailers paid $2.70 for every $1 lost. The study also found that for mobile retailers, the cost is even higher. In 2012, mobile merchants paid $2.83 for every $1 lost, compared to just $2 in 2011.
