Increase in Friendly Fraud
Why Friendly Fraud Is Exploding in Online Sales.
At first glance, it looks like a simple refund request.
But behind the scenes, it could be intentional deception.
📦 Friendly fraud happens when a customer makes an online purchase, receives the goods or services—then disputes the charge with their bank, claiming it was unauthorized.
And it’s rising fast.
With the growth of e-commerce and “instant refund” cultures, chargeback fraud is becoming a silent profit killer for online businesses.
What’s worse? The system often favors the buyer, not the seller.
▶️ In industries like retail, digital products, and subscription services, this is leading to thousands in lost revenue, product losses, and fees.
Here’s why it’s exploding:
- Frictionless payments with weak ID verification
- Increased buyer awareness of refund loopholes
- Minimal consequences for dishonest claims
- Lack of clear fraud prevention policies
🛡️ The solution?
- Strong documentation.
- Clear refund policies.
- Chargeback dispute processes.
- And fraud prevention strategies tailored to your industry.
If your online business has been hit by “friendly” fraud—it’s time to fight back.
