Retail and Ecommerce Companies Face More Than $5 in Costs for Every $1 Lost to Fraud Amid Rising Complexity and Customer Experience Pressures

• More than a third of retail and ecommerce organizations report significant revenue loss tied to fraud over the past year 
• More than half of US merchants report increased customer churn linked to anti-fraud measures 
• Consumers engaging AI agents for transactions is a growing concern 

ATLANTA, June 25, 2026 /PRNewswire/ -- LexisNexis® Risk Solutions released its 2026 LexisNexis® True Cost of Fraud™ Study for Retail and Ecommerce in North America, highlighting the growing financial burden of fraud and the increasing challenge of balancing security with seamless customer experiences. 

The study finds that 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 US and $5.23 in Canada. This marks the first time LexisNexis® Fraud Multiplier™ has crossed the $5 threshold in both markets. 

Fraud continues to have a measurable negative impact on business performance. The study shows that 37% of retail and ecommerce 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 56% of US retailers and 54% of US ecommerce merchants reporting increased customer churn linked to anti-fraud measures. 

"While it's no surprise fraud continues to evolve in scale and sophistication, the challenge for retailers and ecommerce 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." 

Fraud complexity and customer experience pressures intensify 

The study also highlights fraud's expanding complexity. Fraud risk is increasingly distributed across digital and physical channels, payment types and customer touchpoints. Online and mobile channels now account for most fraud costs, representing up to 83% for ecommerce merchants. Common fraud types include chargeback fraud, lost or stolen merchandise and fraudulent returns, reflecting the breadth of threats facing merchants today.  

At a broader level, the financial impact of fraud has increased significantly over time. The fraud multiplier has more than doubled over the past decade, rising from approximately $2.40 per $1 loss in 2016 to more than $5 today, driven by operational, compliance and reputational costs associated with managing fraud.  

The report also identifies emerging risks tied to the rapid growth of agentic commerce, where AI-powered agents transact on behalf of consumers, with adoption accelerating across the sector. More than two thirds of US merchants report concern about the fraud risks associated with these transactions.  

These developments are introducing new fraud vectors and increasing the need for stronger, more adaptive controls.  

Despite these challenges, the study finds that organizations with more mature 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, with 19% stopping 1,000 or more fraudulent transactions per month compared with 4% of low-maturity businesses.  

In response, retail and ecommerce organizations are continuing to shift toward integrated, multi-layered fraud prevention strategies that combine identity verification, device intelligence and behavioral analytics across the customer journey. These approaches are helping organizations improve detection, reduce friction and better align fraud management with customer experience goals. 

Methodology
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 US and Canada.  

About LexisNexis Risk Solutions  
LexisNexis^® Risk Solutions provides customers with information-based analytics and decision tools that combine public and industry-specific content with advanced technology and algorithms to assist them in evaluating and predicting risk and enhancing operational efficiency. Headquartered in metro Atlanta, Georgia, the company has offices throughout the world, serves customers in more than 190 countries and territories and is part of RELX. For more information, please visit LexisNexis Risk Solutions.  

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SOURCE LexisNexis Risk Solutions