Monica Eaton-Cardone, CIO of Global Risk Technologies™, Featured in A Losing Game
It’s a fact; all retailers face the painful issue of shoplifting. As technology advances, the opportunity for criminals to shoplift only becomes greater.
Customers now have the ability to shop almost anywhere. A multitude of channels can be utilised to meet consumers’ shopping needs: in store, on laptops, tablets or mobile phones. This also means there is a multitude of opportunities for criminals to steal.
It can be said that criminals have evolved with technology, moving from the traditional form of shoplifting in brick-and-mortar stores to carrying out their criminal activity online. In recent years fraudsters have been abusing the chargeback process to make their money.
Illegitimate chargebacks are being filed by individuals who order a product online with the intention of not paying for it. When the goods arrive, the fraudster contacts the bank with an excuse for the transaction. The bank automatically refunds the consumer.
These chargebacks, otherwise known as friendly fraud, are becoming a huge problem for retailers trading in the card-not-present realm because they are usually unaware of the severity of the issue.
[blockquote]It is the hidden problem in retail because merchants don’t often realise the extent of the losses it causes.[/blockquote]
As Monica Eaton-Cardone, the CIO and co-founder of Global Risk Technologies™, states in this article, it is costing the industry billions in losses.
[blockquote]…Friendly fraud is costing over €10 billion in industry losses.[/blockquote]
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