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FRAUD INCREASING FORmCOMMERCE MERCHANTS

This research covers consumer-facing retail fraud methods and does not include information on insider fraud or employee theft. This 2014 LexisNexis® True Cost of Fraud Mobile Study was conducted for LexisNexis by Javelin Strategy & Research. It establishes the cost of fraud through the mobile payment channel. LexisNexis and the Knowledge Burst logo are registered trademarks of Reed Elsevier Properties Inc., used under license. True Cost of Fraud and Fraud Multiplier are service marks of LexisNexis Risk Solutions Inc. All other trademarks are owned by their respective organizations. Copyright 2015 LexisNexis. All rights reserved. NXR11004-00-0115-EN-US

LexisNexis® Fraud MultiplierSM calculates the cost of fraud shouldered by merchants. For every $1 in fraud loss, the LexisNexis® Fraud MultiplierSM calculates the cost to the merchant.

Mobile Payments Pose Significant Risk for mCommerce Merchants

Total Transactions

14%Fraudulent

Transactions21%

Three Reasons for Fraud Risk

mCommerce Merchants

All Merchants

Track mobile fraud separately from online fraud

Review priorities for the implementation of fraud prevention solutions

Fraud Costs Differ Between Purchasing Channels

2013 2013

2014 2014

$3.10

$2.62

$2.83

$3.34

1Proliferation of Personal Identifiable Credentials

Recommendations for mCommerce Merchants

3

2

Large Variety of Channels* Accepting Payments

Frequent Merchant Data Breaches

This is the only way to accurately assess the need for fraud solutions designed for the mobile channel

Merchants need to educate themselves on solutions geared toward preventing fraud in the mobile channel

Buy

Every $100of fraud through mobile channelscosts merchants

$334Percent that are mobile transactions

Lexisnexis Fraud Multipler For Mobile Purchases

Lexisnexis Fraud Multipler For Online Purchases

Number of channels

Risk Solutions

2.6

4.5

*POS, browser, app, phone, mail, other