It is imperative, and now more than ever, that retailers 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.
The increase, according to the study, is due to several factors, including the impact of lost and/or stolen merchandise on the company's bottom line and post-fraud costs from customer attrition.
In its report, LexisNexis defined fraud as fraudulent/unauthorized transactions, fraudulent requests for a refund/returned or bounced checks, lost or stolen merchandise, and redistribution costs associated with redelivering purchased items.
