True Cost of Fraud Study Reveals Costs of Fraud 3.75 times the value of the transaction lost for every fraudulent transaction in Mexico

MEXICO, October 21, 2021 / PRNewswire / – LexisNexis Risk Solutions has released its 2021 True Cost of Fraud â„¢ report in Latin America. The study is a comprehensive survey of 454 risk and fraud executives in retail / e-commerce, financial services and lending, including 90 companies from Mexico. Each fraudulent transaction now costs 3.68 times the value of the lost transaction on average in Latin America, up from 3.46 in 2019. Survey respondents indicate that financial institutions and online merchants are the most affected due to a rapid increase in digital transactions during the pandemic.

The LexisNexis Fraud Multiplierâ„ , which measures the total amount of losses suffered by a business based on the actual dollar value of a fraudulent transaction, found that Mexican traders in 2021 paid 3.75 times the amount for each share fraud, compared to 3.55 in 2019. The cost of fraud includes losses related to the face value of transactions for which companies are held liable, as well as costs and interest incurred, fines and legal fees, labor work, investigation costs and external collection costs.

Several factors contributed to the sharp rise in costs, such as fraudsters targeting financial companies for account redemption and card cloning; increased consumer use of digital and contact payment methods which has resulted in more losses due to fraud; and the increase in transactions on mobile channels, which created problems of identity fraud.

The results of the study indicate that many online merchants were unprepared for the rapid increase in digital transactions brought on by the pandemic. The use or limited access by merchants to solutions that assess digital identities and transaction risk has resulted in less unmasking of synthetic identities to protect against cybercrime.

Identity fraud is a concern, especially within the mobile channel. The percentage of fraud fees for financial institutions attributed to the mobile channel has increased in some markets (Mexico, Colombia and Argentina) and are also high for online traders in Brazil, Chile and Colombia.

Key findings of the 2021 report on the real cost of fraud in Latin America:

  • Increase in digital payment transaction volumes – Transactions involving digital payment methods have increased in all Mexican payment methods. Businesses that accept credit and debit cards grew by 31% and 28% respectively, up from 22% and 19% respectively in 2019.
  • Online and mobile transactions have grown rapidly in Mexico – The average volume of transactions via online web browsers has increased from 26% to 33% and via the mobile channel from 16% to 28%. Likewise, these remote channels account for more total fraud losses, with the average percentage attributed to mobile transactions at retailers dropping from 23% in 2019 to 33% in 2021, and the average percentage attributed to online transactions between service companies. financial increases from 35%. in 2019 to 39% in 2021. Additionally, businesses offering mobile commerce have grown from 69% in 2019 to 87% in 2021. The pandemic has triggered an increase in Mexican businesses offering contactless payments, with the online channel representing the highest fraud costs among service companies.
  • Mobile browsers contribute greatly to the costs of mobile channel fraud – Survey respondents attribute that 34% of fraud costs related to mobile channels come from mobile web browsers, of which 56% are in e-commerce.
  • Identity fraud is a major threat and challenge – LATAM’s retail / e-commerce merchants and financial institutions report issues with remote transaction channels involving new payment methods and device and transaction risk assessment. Additionally, there are concerns about the balance between fraud detection and prevention efforts and customer friction, as abandonment is common when customer efforts increase.

“LATAM’s merchants and financial services companies can help prevent fraud, reduce fraud costs, and better balance customer friction through cybersecurity best practices that include a tiered solution approach,” said Rafael Costa Abreu, Director of Fraud and Identity for LexisNexis Risk Solutions. “The study shows that those who follow this approach face fewer challenges and have a lost value of 3.44 times for every fraudulent transaction compared to 3.85 times the value lost for companies using the technology on an ad hoc basis. . “

Find more information about the LexisNexis Risk Solutions 2021 Actual cost of fraud for Mexico to study here.

About LexisNexis Risk Solutions

LexisNexis® Risk Solutions harnesses the power of data and advanced analytics to deliver insights that help businesses and government entities reduce risk and improve decisions for the benefit of people around the world. We provide data and technology solutions for a wide range of industries including insurance, financial services, healthcare and government. Headquarters in the metro Atlanta, Georgia, we have offices around the world and are part of RELX (LSE: REL / NYSE: RELX), a global provider of information-based analysis and decision tools for professional and business clients. For more information, please visit and

Claudia lima
MarketCross Company
[email protected]
+55 19 99779-0040

SOURCE LexisNexis Risk Solutions

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