52%67%

75%

66%

32%

66%

23%35%

20%

52%36%

Use up to 4 Solutions (Basic) Use 5 - 10 Solutions (Multi-Layered)

$4.71$2.43

$4.64$2.38$2.80 $2.18

$3.38$2.39

Use up to 4 Solutions (Basic) Use 5 - 10 Solutions (Multi-Layered)

Retail eCommerce Financial Services Lending

28%

42%30% 30%

$2.77 $2.48 $2.67 $2.82$3.56 $3.40 $3.04 $3.07

Retail eCommerce Financial Services Lending

Overall Selling digital & physical goods

Every $1 of fraudlosses actually costs

(LexisNexis Fraud MultiplierSM):

Larger firms / primarily online transactions

+

+

=

eCom

merce Retail

Financial Services Le

nding

Up +63% from 2016 ($2.18)

Therefore, identityverification remainsa significant problemfor larger online retailers,financial services andlending firms.

Identity verification in the online channel as a key challenge

% Distribution Fraud LossesInvolving Identity Theft

Mid / Lg* RetailSelling Digital

Goods

Mid / LgeCommerce

Mid / Lg Financial SvcMostly Online

Lg** Lending Mostly Online

Mid / LgeCommerce

Mid / Lg RetailSelling Digital

Goods

Mid / Lg Financial SvcMostly Online

This leads to:

Delayed addressverification

Excessive manualreviews

Delayed transactionconfirmation

Customer Friction &Higher Fraud Costs

Larger online retailers,financial services andlending firms invest infraud prevention. But advanced identity authentication & transaction

verification solutions use is limited.

78% - 92% usefraud mitigationsolutions.

Average 4 to 7 solutions are used.

The cost of fraud is higher for merchants selling digital goods and foronline financial services and lending firms.

...reducedsuccessful

fraud attempts***

…lowered actualcost for every $1 of fraud losses***

showed usingmore layered solutions…

*Mid / Large is defined as those generating $10M+ revenues annually. **Large is defined as those generating $50M+ revenues annually. ***Based on2017 True Cost of FraudSM survey respondents; results can differ based on various other factors and are not a prediction or promise of the same outcomes.This research covers consumer-facing fraud methods and does not include information on insider fraud or employee theft. This LexisNexis Risk Solutions2017 True Cost of Fraud study was conducted for LexisNexis by KS&R. It establishes the cost of fraud through different payment channels. LexisNexis and theKnowledge Burst logo are registered trademarks of RELX Inc. LexisNexis Fraud Multiplier is a service mark of RELX Inc. True Cost of Fraud is a service mark ofLexisNexis Risk Solutions Inc.Copyright 2017 LexisNexis. All rights reserved. NXR12140-00-0817-EN-US

ID Authentication

ID Verification

Transaction Risk Scoring

The 2017 True Cost of FraudSM findingsfor retail, eCommerce, financialservices and lending firms using amulti-layered solution approach of:

Fraudsters have online transactionchannels and digital goods in theircrosshairs. Are you protected?

For more information, please visit www.lexisnexis.com/risk/financial/fs-fraud-detection-prevention.aspx or contact us at 1-800-869-0751

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