November 5, 2012, 9:36 AM

Fraud hits large online retailers hard

As online retailers grow, so does the threat that online fraud poses to their businesses.

Internet Retailer

On average, large e-retailers—those with $50 million or more in annual sales—lose $219 per fraudulent transaction, 82.5% more than $120 per transaction loss average across all online merchants, according to a recent survey of 1,030 U.S. e-retailers by LexisNexis, a provider of legal and business information services. That may be because large retailers often sell high-ticket items, which makes them less likely to automatically flag high-value transactions for further review, LexisNexis says. But it may also be that many of those retailers lag in adoption of several tools that can combat fraud, such as IP geolocation, which helps identify the location of the customer placing an order. For more on fraud-fighting tools, see page 41.


Sign In to Make a Comment

Comments are moderated by Internet Retailer and can be removed.

Not a member? Signup for free today!




Relevant Commentary


Sergio Pereira / B2B E-Commerce

Quill turns to its B2B customers for new ideas

Coming in April is a new section of that will let customers and Quill ...


Charles Nicholls / E-Commerce

E-mail remarketing: three best practices to maximize revenue

Consumers who make it to the shopping cart are interested in buying. The chief strategy ...