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.