Fraud Costs Hit Record Highs for North American Retailers

The 2026 LexisNexis True Cost of Fraud study reveals that 37% of organizations have suffered significant revenue losses over the past year. Beyond direct theft, the burden stems from the operational, compliance, and reputational expenses required to manage these threats. The cost multiplier has more than doubled since 2016, when it stood at approximately $2.40 per dollar lost.

Aggressive security measures are creating a secondary crisis: customer churn. Over half of US merchants report that their current anti-fraud tools are driving away legitimate shoppers. This friction is particularly problematic as digital and mobile channels now account for 83% of fraud costs for ecommerce providers. Furthermore, the rise of AI-powered agents in commerce has created new vulnerabilities, with over two-thirds of merchants expressing concern regarding the security of these automated transactions.

Success in this environment appears linked to the maturity of a company’s defense strategy. Organizations utilizing integrated, multi-layered approaches—combining identity verification with behavioral analytics—report better retention and higher detection rates. High-maturity firms are significantly more likely to stop over 1,000 fraudulent transactions monthly, proving that sophisticated, adaptive controls can mitigate both financial loss and user friction.