Retailers are losing $100 billion a year from 'friendly fraud,' report finds — and sometimes it's an accident
Publishing timestamp: 2024-07-25 11:08:27
Summary
Friendly fraud, where customers dispute legitimate charges they made, is on the rise, causing significant losses for retailers. The ease of disputing charges, especially with the rise of mobile banking, has led to an increase in friendly fraud cases. Identifying intent behind these disputes can be challenging, but efforts are being made to address this issue. Merchants can suffer from high chargeback volumes, affecting their ability to process cards and leading to fines. Experts recommend attempting to resolve issues with merchants before disputing charges. Social media has also played a role in the increase of friendly fraud cases.
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Keywords: business news, discover financial services, american express co, visa inc, mastercard inc, personal finance, equifax inc,