According to a new report released today by LexisNexis® Risk Solutions, U.S. merchants are incurring $191 billion in fraud losses each year. The 2009 LexisNexis® True Cost of Fraud Benchmark Study discovered that merchants must absorb nearly 10 times the identity fraud cost incurred by financial institutions. Retail merchants experience a massive $100 billion in losses solely attributed to identity fraud, which escalates to $191 billion when factoring in the additional cost of lost and stolen merchandise. The study also found that merchant fraud losses amounted to more than 20 times the total value of consumer fraud victim losses which totaled approximately $4.8 billion in 2008. READ MORE

Javelin Strategy & Research has released a new report - Mobile Person-to-Person Payments: Mounting Telco Activity in a Mobile Channel Segment That Financial Institutions Can’t Afford to Lose - that finds that "financial institutions must act now to implement person-to-person mobile solutions before carriers capture the market."

Javelin says "that conditions are growing ripe for potential widespread consumer use of mobile devices to send payments between one another: smartphones are now used by 17 percent of consumers, mobile banking is used by many, and use of the internet for banking and shopping has been common for years. These are just some of the conditions that have created an increased likelihood that consumers will soon begin to use mobile person-to-person (P2P) transfers." READ MORE

Javelin Strategy & Research has released a new report evaluating providers of alternative payment solutions for online retail transactions. The report, Predicting Alternative Payments Vendor Success: Balancing Needs Among Banks, Merchants, and Consumers reviews services provided by nine vendors: Acculynk, eBillme, HomeATM, Mazooma, Moneta, NACHA SVP, Noca, SeerGate, and Verient. READ MORE

Javelin Strategy & Research has released a new report that shows how it believes that financial institutions must create a Customer-Driven Architecture (CDA) that gives customers what research shows they want most: financial control. According to Javelin, "with many consumers’ finances in shambles, today’s economy is the perfect time to finally put customers in charge. The seven attributes of CDA outlined in the report shows bankers how to prioritize technology investments in order to achieve iPhone-like monetary control." READ MORE

The 2009 Identity Fraud Survey Report – released today by Javelin Strategy & Research – confirms that the number of identity fraud victims has increased 22 percent to 9.9 million adults in the United States, while the total annual fraud amount only increased slightly by seven percent to $48 billion over the past year. READ MORE

Javelin Strategy & Research has just released a new report titled "Prepaid Product Evolution - Align Processor Relationship With Strategic Goals" written by Bruce Cundiff. From the abstract:

"This Javelin research report makes use of consumer data analyzing the propensity to use prepaid products, and also in-depth interviews with prepaid program managers at financial institutions and other third parties to understand the key components of a prepaid processing relationship and how prepaid program managers must approach the establishment of such a relationship. "

On his blog, Javelin's James Van Dyke writes about mobile banking and the current wait-and-see attitude evidenced by many mid-market and smaller banks, credit unions and card issuers. Van Dyke thinks that "very soon, you may not have a business that reaches vital consumer segments if your business isn’t available via mobile devices." [Editor's Note: Makes me wonder - who is the smallest US financial institution to have adopted mobile banking to date?]

Javelin Strategy & Research has announced its 2008 Online Retail Payments Forecast exploring the increasing appeal and growth of alternative payment methods and the impact it represents to banks and traditional payment card networks. Among the findings, Javelin projects that "nearly one third of online retail transactions [are] expected to be alternative payments by 2013." READ MORE

eBillme has announced its latest quarterly eBillme Online Spending Index finding that the impact of the credit crunch is expected to effect holiday shopping as projected consumer spending online remains steady at $100 - $250 on average - and finding "that the credit crunch is causing shoppers to reduce their credit card usage and impacting consumer access to credit resulting in a shift to cash alternatives." READ MORE

In a press release, the Smart Card Alliance reports that "after two years of fast growth in contactless payments, the verdict is in: Once consumers try contactless, they like it! And with large issuers including American Express, Chase, Citibank, Washington Mutual, Wells Fargo and many others issuing contactless cards, the number of users is growing fast." READ MORE

Javelin Strategy & Research is announcing a new study titled "2008 Expedited Payments Forecast: Banks Must Add Expedited Payments Now or Lose $5 Billion in Fees to Billers." According to Javelin, "the study finds that financial institutions must incorporate expedited payments now or risk losing $5 billion in fees to third party billers." READ MORE

Tom Wills, Senior Analyst, Security and Fraud, at Javelin Strategy and Research has published a new report titled "Consumer Authentication for Retail Banking: Compliance Does Not Equal Security".

"With the majority of financial institutions in compliance after the frenzied rush to meet the authentication requirements of the 2005 FFIEC Guidance, a number of financial institutions have relaxed into a satisfied mode. Compliance is not security, however, and complacency increases risk. Weaknesses have already been proven for widely adopted methods such as mutual authentication and device recognition." READ MORE

Javelin Strategy & Research has released a report on credit cards and consumer spending finding that Americans are cutting back on credit card use and having difficulty paying off balances. Javelin found "conservative spending behaviors as a result of the economic downturn and the ramifications of the mortgage crisis, soaring fuel costs and rising food prices." READ MORE

Javelin has announced a new report titled "Credit Card Satisfaction—An Effective Acquisition and Retention Strategy Must Focus on Multiple Facets of the Relationship". The report analyzes consumer perceptions affecting selection of a credit card issuer, as well as choosing a card at the point of transaction. READ MORE

Javelin Strategy and Research has announced a new report titled "Mobile Marketing: Financial Marketing Strategies to Engage the Mobile Consumer" to be available tomorrow. "58 Million US adults received at least one mobile marketing message on their mobile phones in the last year. Mobile marketing provides an opportunity for financial institutions (FIs) to interactively reach on-the-move consumers closer to the purchase decision in a one-to-one communication." READ MORE

A new "green banking" study by Javelin Strategy & Research finds that 3 out of 4 consumers are still "clinging to paper statements". READ MORE

Javelin Strategy & Research has announced a new report titled "2008 US Mobile Banking Benchmark Study: Mobile Access, Features, and Security – What Banks Are Offering Now" that it says "examines banks and credit unions on consumer mobile banking offerings within three categories: Access, Security and Features. Top US financial institutions (FIs) were mystery-shopped for their mobile banking service offerings, using Web and phone data collection methods." READ MORE

Javelin Strategy & Research has published a new report on mobile person-to-person (P2P) payments and transfers that outlines target consumer segments, obstacles and drivers for product adoption, and detailed case studies of three mobile P2P payment models from PayPal, Obopay and mChek. According to the report, most consumers want high-speed transactions, but only one in ten consumers is willing to adopt mobile P2P payment services.

Javelin Strategy and Research has published its 2008 Identity Fraud Survey Report finding that identity fraud is declining in most parts of the United States with a losses down about 12 percent over 2006. Javelin's James Van Dyke notes, however, that "there's a catch. In a back-to-the-future scenario, there was a sharp increase in "old-fashioned" mail and telephone fraud, including Vishing. These methods grew from 3% to 40%, pointing to thieves’ new creativity in gathering personal information by mail and telephone."

Javelin Strategy and Research has announced its "2007 Card Issuers’ Identity Safety Scorecard" - including describing "the security features of a dream credit card that put consumers in the driver’s seat when it comes to protecting them from identity fraud and knowing exactly what’s happening with their accounts. Javelin also announced the top credit card issuers that provide the best features that prevent, detect and resolve identity fraud."

Javelin Strategy & Research has announced a new report titled "Mobile Payments Forecast: Contactless Evolution Flounders Without Heightened Attention to Merchants And Wireless Carriers" by analyst Bruce Cundiff.

Javelin Strategy & Research has announced new research that it says "uncovers significant product marketing requirements for building banks' consumer usage of mobile services. While consumers are better primed for mobile banking now than they were in 2000, financial institutions (FIs) should not consider the mere availability of mobile banking a guarantee of success. FIs should prepare for measured, rather than widespread and immediate, adoption, even though consumers, handsets and mobile networks have made tremendous advancements."

Javelin Strategy & Research has published a new report titled "Expedited Bill Payments Forecast 2007 to 2009: Effective Strategies to Create Revenue and Enhance Relationships" (Preview PDF) that examines the future of expedited bill payments—services that enable consumers to make last minute bill payments—and how they represent a viable revenue opportunity for billers and financial institutions.

Javelin Strategy & Research has released its 2007 Identity Fraud Survey Report, saying it provides "compelling new information about the reduction of identity fraud across the United States, while also identifying important risk differentiators between age and income demographics." According to the report, identity fraud has declined by about 12 percent over the previous year - that translates into a total fraud reduction of $6.4 billion according to Javelin. The survey is co-sponsored by CheckFree, Visa and Wells Fargo & Company.

Javelin Strategy & Research has released a new report titled "Interactive Financial Messaging™" showing "how financial institutions can improve customer convenience and loyalty by using new interactive technologies to give consumers more control over their accounts."

Javelin Strategy & Research and the Council of Better Business Bureaus have released some of the results from their 2006 Identity Fraud Survey reporting that "that despite growing fears the growth of identity fraud is contained and that data compromise through the Internet is actually less severe, less costly and not as widespread as previously thought."

Javelin Strategy & Research has launched a new blog where, according to Bruce Cundiff, manager of Javelin's syndicated research practice, they intend to provide more information about their research findings and more frequent insight and analysis.

Javelin Strategy & Research has released its second annual Online Banking Safety Scorecard which ranks 28 banks on their consumer-facing online identity fraud prevention, detection and resolution capabilities with respect to how well the banks protect consumers and allow consumers to protect themselves.