Fraud losses decline among retail merchants but still remain high
NEW YORK Retail merchants incurred more than $139 billion fraud losses during the past year, according to a new study released by LexisNexis Risk Solutions. While fraud stands at a more than $100 billion problem for retail, fraud losses did decline 25%, compared with 2009.
“While the total cost of fraud has gone down since last year, retailers still lose more than $3 for every $1 lost due to a fraudulent transaction, and online or mobile fraud is a growing threat,” stated Jim Rice, director of market planning for retail and e-commerce markets for LexisNexis Risk Solutions.
The reduction in fraud losses may be attributed to a gradual improvement in economic conditions, greater awareness of fraud threats and increased success of effective fraud prevention solutions.
The second annual “LexisNexis True Cost of Fraud Study,” conducted by Javelin Strategy & Research, examines how U.S. retail fraud affects merchants, financial institutions and consumers. The study was conducted by surveying a retail merchant panel comprised of 1,006 risk and fraud decision-makers and influencers. The study also draws on identity fraud victim data from a phone survey of more than 5,000 U.S. adults, including 828 fraud victims.
For every $100 in fraudulent transactions, retailers incurred a “true” cost of $310 in total losses, including costs associated with replacing lost or stolen merchandise. In addition, the study found that consumer victims of retail fraud incurred $5.5 billion in costs stemming from un-reimbursed losses, legal fees and other factors.
The study also found that merchants who accept mobile payments saw the highest volume of fraudulent transactions; meanwhile, nearly 4-in-10 merchants plan to accept mobile charges in the next 12 months.
Merchants with more than $50 million in annual revenue experienced more than double the average annual fraud loss of their smaller counterparts.
Furthermore, friendly fraud accounted for one-fifth of fraud affecting merchants. Friendly fraud is the term used to describe a fraud that occurs when a consumer buys an item online, receives it but claims they did not, and requests a refund or chargeback from the merchant or delivery of a duplicate item.
As for consumers, more than 1-in-3 consumers who were victims of fraud will avoid certain merchants, 1-in-4 reported they will spend less money and nearly 1-in-3 victims will switch payment methods.
GPhA and FDA to discuss me-too medicines at technical conference
WASHINGTON —More than a dozen top Food and Drug Administration officials will meet with generic drug industry leaders next month to discuss the latest regulatory and technical developments on the me-too medicine front, the Generic Pharmaceutical Association announced.
The GPhA/FDA 2010 Fall Technical Conference will kick off Oct. 19 at the Bethesda North Marriott Hotel and Conference Center in Maryland. On hand will be a slate of FDA officials, led by Janet Woodcock, director of the agency’s Center for Drug Evaluation and Research.
Woodcock will deliver the keynote address. Also speaking at the three-day annual event will be Keith Webber, acting director of the FDA’s Office of Generic Drugs; Lawrence Yu, deputy director of science and chemistry for the agency’s generic division; and Ilisa Bernstein, a pharmacist and attorney who is acting deputy director of CDER’s Office of Compliance.
The list of scheduled speakers also includes Dale Conner and Barbara Davit, who head OGD bioequivalence activities.
“Last year, over 500 industry and FDA professionals attended this important, educational event,” the GPhA noted. “More than 150 staff members from the FDA’s Office of Generic Drugs joined their industry colleagues to share information and discuss issues that are critical to both industry and the FDA.”
A GPhA representative called the event “the premiere science and regulatory meeting for the generic pharmaceutical industry,” and added, “GPhA’s Fall Technical Conference is the only conference of its kind where attendees can hear presentations by OGD staff and meet them during the many networking opportunities.”
Among the topics that will be addressed are labeling issues for abbreviated new drug applications, chemistry manufacturing and controls, trends in drug compliance and supply chain security, and the 180-day market exclusivity awarded to first-approved ANDAs.
Networking opportunities, according to the GPhA, include two breakfasts, luncheons, morning and afternoon refreshment breaks, a reception and a buffet dinner and party on Oct. 20.
Giving snacks that extra ‘Pop’
FREEPORT, N.Y. — Medora Snacks has introduced a new, healthy snack option to the snack market. PopCorners snacks are popcorn chips made from all-natural ingredients that are popped, not baked or fried. The chips can be eaten alone or paired with a dip.
The chips are available in four flavors—white cheddar, butter, sea salt and kettle—and in 1.1-oz. and 5-oz. packages.
Popcorn sales are on the rise. Linda Fishman, Medora Snacks’ president, said popcorn sales were up 21% in the past year. PopCorners, she said, are an ideal choice for consumers who are demanding healthier snacks. The new snacks are free of trans fat, gluten and cholesterol.