When it comes to fraud, international merchants are just as susceptible. In fact international merchants have seen an increase in fraud from $2.30 in 2014 to $2.53 in 2015, according to the 2015 LexisNexis Risk Solutions True Cost of Fraud Study.
International merchants continue to see an upward trend in fraud loss as a percentage of their revenue is increasing from 1.21% in 2014 to 1.56% in 2015.
While international merchants may find verifying customer ID and confirming package delivery less challenging, identity theft and friendly fraud continue to be major loss drivers.
International merchants rush to accept mobile commerce payments, increasing to 29% of merchants in 2014 and 42% in 2015. However, international merchants are falling victim to friendly fraud, identity theft, and fraudulent returns, which often leaves them unprepared for these challenges, especially outside the U.S.
New channels could complicate fraud mitigation and increase related mitigation costs. International merchants adopted 3.9 fraud solutions in 2015 compared to 3.3 in 2014, spending an average of $80,000 on fraud mitigation in the past 12 months.
Also from the report:
- International merchants are four times more likely to believe manual reviews are a top challenge compared to that of 2014 and spent nearly 18,000 in manual reviews. With card not present fraud expected to increase in the next few year, the report states matters will only get worse.
- International merchants face the most acute false positive problem. This problem is sorely felt by international merchants, who decline the highest percentage of flagged transactions (27%), and were four times as likely to list excessive manual orders as their top fraud mitigation challenge compared to 2014.