A LexisNexis Risk Solutions study indicates that while 37% of traditional and digital store operators reported significant revenue losses tied to fraud during the past year, the majority stated anti-fraud measures at checkout and elsewhere in the shopping process caused them to lose customers.
Specifically, the 2026 Lexis/Nexis Risk Solutions “True Cost of Fraud “study revealed retail fraud prevention measures at checkout by 56% of traditional retailers and 54% of e-commerce operators drove customer churn,
In looking at the top two retail staging grounds for criminal activity, 30% of fraud costs generated in the U.S. came from mobile channels and 53% from online purchases, LexisNexis Risk Solutions maintained.
The study put the total cost of fraud for traditional and e-commerce retailers at just more than $5 for every $1 in direct loss in both the United States and Canada, marking the first time the figure has crossed the $5 threshold in both markets.
As it grows, fraud complexity is expanding across digital and physical operations, payment types and customer touchpoints, LexisNexis Risk Solutions noted. The LexisNexis Risk Solutions raud multiplier has more than doubled over the past decade, rising from approximately $2.40 per $1 loss in 2016 to more than $5 today, LexisNexis Risk Solutions indicated, driven by operational, compliance and reputational costs associated with fraud management.
As artificial intelligence gains at retail, new threats loom. AI-powered agents are transacting on behalf of consumers as adoption accelerates across the sector. More than two thirds of merchants in the U.S. now express concern about the fraud risks associated with such transactions, LexisNexis Risk Solutions asserted. As a consequence, 73% of U.S. retailers and 54% of Canadian retailers are adopting agentic fraud analysis.
Despite the challenges, the study suggests organizations with more evolved fraud prevention strategies are achieving better outcomes. Two in 10 high-maturity organizations reported decreased customer churn due to fraud prevention efforts compared with 9% of low-maturity organizations. High-maturity organizations also are more effective at preventing fraud at scale, with 19% halting 1,000 or more fraudulent transactions per month compared with 4% of low-maturity businesses.
Retail organizations continue to shift toward integrated, multi-layered fraud prevention strategies that combine identity verification, device intelligence and behavioral analytics across the customer journey, LexisNexis pointed out. Such approaches can help organizations improve detection, reduce friction and better align fraud management with customer experience goals.
“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,” Maanas Godugunur, LexisNexis Risk Solutions senior director of fraud and identity. “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.”
