{"id":975,"date":"2026-06-26T14:22:44","date_gmt":"2026-06-26T19:22:44","guid":{"rendered":"https:\/\/www.paymentconsulting.net\/Blog\/wordpress\/?p=975"},"modified":"2026-06-26T14:22:44","modified_gmt":"2026-06-26T19:22:44","slug":"fraud-costs-5-13-for-every-1-in-loss-lexisnexis-risk-solutions-finds","status":"publish","type":"post","link":"https:\/\/www.paymentconsulting.net\/Blog\/wordpress\/?p=975","title":{"rendered":"Fraud Costs $5.13 for Every $1 in Loss, LexisNexis Risk Solutions Finds"},"content":{"rendered":"
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<\/i>Kevin Woodward<\/a><\/span>\u00a0<\/i>June 26, 2026<\/span>\u00a0<\/i>Credit Cards<\/a>,\u00a0Debit Cards<\/a>,\u00a0E-Commerce<\/a>,\u00a0Fraud & Security<\/a>,\u00a0Mobile Commerce<\/a><\/span><\/p>\n

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Merchants wrestle with fraud every day, lamenting how much is lost in each bad transaction. LexisNexis Risk Solutions, as it\u2019s done for a number of years, has quantified the actual cost beyond the item\u2019s value.<\/p>\n

In 2026, the total cost of every $1 in fraud is $5.13 in the United States and $5.23 in Canada for retailers and e-commerce merchants. That is up from\u00a0$4.61<\/a>\u00a0<\/strong>and $4.52, respectively, from 2025. This marks the first time the $5 threshold has been crossed in both markets, the company says.<\/p>\n

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What\u2019s changed is that new attack vectors are having an impact. LexisNexis Risk Solutions says fraud risk is increasingly distributed in digital and physical channels, payment types, and customer touchpoints.<\/p>\n

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\u201cOnline and mobile channels now account for\u00a0most\u00a0fraud\u00a0costs,\u00a0representing\u00a0up to 83% for e-commerce merchants. Common\u00a0fraud\u00a0types include chargeback\u00a0fraud, lost or stolen\u00a0merchandise\u00a0and fraudulent returns, reflecting the breadth of threats facing merchants today,\u201d the Atlanta-based company says.<\/p>\n

For U.S. retailers, the top three fraud loss types were chargeback fraud at 12%, and lost or stolen merchandise and fraudulent requests for a return or refund, each at 11%. It was similar in Canada with chargeback fraud at 14%, lost or stolen merchandise, 14%, and scams and impersonation fraud at 13%.<\/p>\n

For U.S. e-commerce operators,\u00a0chargeback fraud<\/a><\/strong>\u00a0accounted for 12% as did first-party fraud, followed by lost or stolen merchandise, 11%. In Canada, fraudulent requests for a return or refund accounted for 16% of fraud losses, followed by scams and impersonation fraud at 16%, and chargeback fraud at 14%.<\/p>\n

Payment cards, in both countries, accounted for large shares of fraud losses by payment type.<\/p>\n

Card transactions, at 26%, garnered the biggest share of fraud costs by payment method for U.S. retailers, and rose to 31% for U.S.\u00a0e-commerce<\/a>\u00a0<\/strong>merchants. In Canada, card transactions were cited in 43% of fraud losses for retailers, though digital wallets, at 26%, outpaced cards at 20% for Canadian e-commerce merchants.<\/p>\n

Additionally, the cost of fraud has increased substantially over time. It was at\u00a0$2.40<\/a><\/strong>\u00a0in 2016 and now has more than doubled.<\/p>\n

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