Friendly fraud has been growing 41% in recent years, costing over €10billion in industry losses, compared to around €2billion lost through ID fraud, according to Visa. It occurs when customers make an online purchase of a particular item or service, but then claim they either didn’t receive it or didn’t order it in the first place. They then instigate a ‘refund’ by going directly to their bank, bypassing the merchant, who gets hit with a costly chargeback.
This white paper examines what friendly fraud is and why this problem is getting worse. It also explains ways that merchants, specifically SMEs, can equip themselves to tackle friendly fraud and protect against financial, operational and reputational damage.
Fill out the form to download this FREE white paper, helping you better understand the threat of friendly fraud and how you can reduce your risk.