Study: Total cost of fraud now exceeds $5 for every $1 of direct loss
The cost of fraud is mounting for North American retailers and merchants — and the rise of agentic commerce is making the situation more complex.
The total cost of fraud now exceeds $5 for every $1 of direct loss in both the United States and Canada, reaching approximately $5.13 in the U.S. and $5.23 in Canada, reveals a study from LexisNexis Risk Solutions. This marks the first time LexisNexis Fraud Multiplier has crossed the $5 threshold in both markets.
Online and mobile channels now account for most fraud costs, representing up to 83% for e-commerce merchants. Common fraud types include chargeback fraud, lost or stolen merchandise and fraudulent returns, reflecting the breadth of threats facing merchants today.
LexisNexis found that nearly four-in-10 (37%) retail and e-commerce organizations reported significant revenue losses tied to fraud over the past year. At the same time, efforts to strengthen fraud controls are contributing to customer friction, with more than half (56%) of US retailers e-commerce merchants (54%) reporting increased customer churn linked to anti-fraud measures.
Notably, more than two thirds of U.S. merchants reported concern about the fraud risks associated with transactions placed by AI-powered agents on behalf of consumers.
The study found that organizations with more developed fraud prevention strategies are achieving stronger outcomes. For example, 20% of high-maturity organizations reported decreased customer churn because of fraud prevention efforts, compared with 9% of low-maturity organizations.
High-maturity organizations are also more effective at preventing fraud at scale, according to LexisNexis, with 19% stopping 1,000 or more fraudulent transactions per month compared with 4% of low-maturity businesses.
[READ MORE: Online scams decreasing consumer trust]
“While it’s no surprise fraud continues to evolve in scale and sophistication, the challenge for retailers and e-commerce providers is adapting to changing attack vectors at scale,” said Maanas Godugunur, senior director of fraud and identity at LexisNexis Risk Solutions. "Survey results are clear: organizations that take a more integrated, multi-layered approach to fraud prevention are better positioned to protect their customers, deliver superior customer experiences and, in turn, increase customer loyalty, manage risk and drive growth.”
The 2026 LexisNexis True Cost of Fraud Study for Retail and Ecommerce in North America is based on insights from 513 risk and fraud leaders at consumer-facing organizations in the U.S. and Canada.
