Friendly Fraud isn't so Friendly

Learn how to protect your store against common Friendly Fraud tactics

Friendly Fraud

Here are the common types of Friendly Fraud

Descriptor Confusion

The Cardholder may not recognize the Transaction

Buyer Remorse

The Cardholder regrets the Transaction a few days later

Deliberate Fraud

Cardholder is complicit with informing the Issuer that they did not initiate the Transaction

Prevent Friendly Fraud

Preventing friendly fraud, often referred to as "chargeback fraud," poses a unique challenge for businesses as it involves legitimate customers abusing the chargeback process to seek refunds or dispute transactions they authorized.

Employing AI-powered solutions can significantly aid in mitigating the risks associated with friendly fraud. First and foremost, AI algorithms can analyze transactional data and customer behavior patterns to distinguish between genuine disputes and fraudulent claims.

By scrutinizing historical purchasing behavior, user interactions, and other relevant data points, AI systems can flag potentially fraudulent chargeback requests. This approach enables businesses to intervene and address issues before they escalate into chargebacks, thereby reducing revenue loss and maintaining customer trust.

Detect Anomalies

By identifying suspicious activities, AI solutions can trigger alerts for further investigation

Predictive Analytics

Analyze a wide array of data, including past disputes, customer feedback, and transactional histories

Predictive Models

Predictive insights empower businesses to take preemptive measures

Protect Yourself against Friendly Fraud

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