Chargebacks can be the proverbial thorn in the side of every business. Originally created in order to protect consumers, unfortunately, it has become an easy way for some to commit fraud. Inevitably, this has deeply hurt businesses as they spend an inordinate amount of time, money, and energy fighting this never-ending battle. When merchants have many chargebacks (exceeding a rate...
The ongoing fight against fraud seems to be intensifying. Specifically, Friendly Fraud is on the rise and becoming more widespread. The term “Friendly Fraud” is a misnomer as there is absolutely no “friendly” intent on the part of the cybercriminals who engage in this illegal act. Friendly fraud, also known as chargeback fraud, happens when a customer purchases a product...
The ongoing fight against fraud seems to be intensifying. Specifically, Friendly Fraud is on the rise and becoming more widespread. The term “Friendly Fraud” is a misnomer as there is absolutely no “friendly” intent on the part of the cybercriminals who engage in this illegal act. Friendly fraud, also known as chargeback fraud, happens when a customer purchases a product...
By now, everyone knows that Facebook not only cashed in the rampant friendly fraud generated by kids unintentionally or without parents’ knowledge downloading games from the platform, but it encouraged the practice. A few years ago, the social media giant informed its employees of friendly fraud and explained how it should not try to block it. The result was some...
Cyber Monday was the biggest online shopping day in U.S. history. According to Adobe, the grand total was an estimated $6.6 billion in sales, representing a 17 percent increase over last year. In comparison, Black Friday and Thanksgiving Day generated $5 billion and $2.9 billion in online sales, respectively. The top Cyber Monday sellers included: Nintendo Switch, Apple AirPods, Google...
A great number of merchants in the US are being attacked by fraudsters. In September 2014, the US experienced 52% of total attack volume. The United Kingdom, China, and the Netherlands experienced 9%, 8%, and 6% of attack volume, respectively. Statistics show that airlines (among e-commerce merchants) are most affected by fraudulent transactions. Airline merchants account for 46% of fraudulent...
Every merchant needs to worry about their fraud risk. While many think that fraud happens to online businesses, the reality is that every merchant that accepts plastic card payments is at risk. Some believe that checking a photo ID can help, and it can, it does not protect you 100% from scammers. The ultimate protection comes from a close source:...
“Rather fail with honor than succeed by fraud.” – Sophocles Fraud can never be “friendly.” Credit card fraud is harmful to any business. To prevent profit losses, merchants shouldn’t neglect this threat. They should figure out unlawfully filed friendly fraud chargebacks, and minimize the risks and expenses associated with them. Consumer Confidence And Ecommerce Growth As compared to the US,...
Chargebacks remain one of the biggest issues for online merchants. Unfortunately, as more and more consumers take to online shopping, cases of chargebacks have only increased and can be expected to increase even further going forward. Essentially, a chargeback happens when a consumer realizes a mistake on their credit cards and calls their card issuer. The issuer then investigates the...
Apparently, switching to digital payment could bring even more trouble. If you’ve been thinking about shifting to digital payment platforms hoping that you would avoid fraud, you may be in for a rude shock. The most popular kind of fraud in the digital world is called “friendly fraud.” You would wonder why someone had to call it “friendly” when indeed...
