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Annual Javelin Merchant Survey Reports on the Financial Impact of Fraud

As the growth of e-commerce accelerates, fraudsters have increased their focus on exploiting online and mobile channels, while merchants have faced rising losses and fraud management expenses. Overall, it’s a frustrating trend: Despite spending more, merchants are losing more to chargebacks.

Many measures make up the total picture of fraud’s impact on a retailer’s P&L—from false positives to operational investments. In the 2017 annual report, Javelin breaks down the data and examines strategies for managing fraud risk.

A few of the most impactful statistics from the report include:

  • Merchants are losing, on average, 8% of their annual revenue to fraud.
  • Year-over-year fraud spend increased—up 42% for digital goods merchants.
  • Chargebacks are taking a toll—up 60% for digital goods merchants.