More than a decade ago, the term "friendly fraud" was invented to describe when a consumer makes a purchase they intend to keep with their legitimate payment card, but then initiates a chargeback to get their money back. Since its emergence, it has not only become a much bigger problem, but also taken on many different forms: buyer's remorse; a family member using a cardholder's card; and more malicious schemes. One recent incarnation may be the unfriendliest of all—refunding fraud. This is friendly fraud on an industrialized scale with criminal organizations offering to get consumers refunds on legitimate transactions, and keep the goods. In this session, panelists will discuss the newest form of friendly fraud and offer suggestions to recognize it and prevent it.
In partnership with CNP