LexisNexis® Risk Solutions has unveiled the findings of its 2023 LexisNexis® True Cost of Fraud™ Study – Europe, Middle East and Africa. The annual report, based on a commissioned survey conducted by Forrester Consulting, reveals that businesses in EMEA now bear a cost of fraud that is 3.90 times the face value lost in fraudulent transactions.
In South Africa, 49% of companies reported an increase in fraud in the 12 months prior to the survey, while organizations incur an average cost of R3.64 (R3.10 for retailers and R4.52 for financial institutions) for every rand lost to fraud. These costs encompass financial losses due to fraud, as well as internal labor expenses, external costs, interest and fees, along with the expenses associated with replacing or redistributing lost or stolen merchandise.
While rapid adoption of digital payments improves payment experiences, it also exposes numerous systems and channels to more innovative fraud attacks. Across EMEA, digital channels account for 52% of overall fraud losses, surpassing physical fraud for the first time. Consequently, cybercriminals exploit the anonymity of digital, cross-border transactions to execute fast and untraceable fraud. Additionally, the rise of scams and the use of technology, such as artificial intelligence (AI), expands cybercriminals' ability to exploit both consumers and businesses
Additionally, the rise of scams and the use of technology, such as artificial intelligence (AI), expands cybercriminals' ability to exploit both consumers and businesses

Source prnewswire