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.