Home Fraud Prevention Common Chargebacks Often Associated with First Party Fraud

Common Chargebacks Often Associated with First Party Fraud

There are many schemes used to defraud eCommerce merchants which range from buying goods with compromised identity and payment account information to consumers using their real information and later abusing either the merchant’s return policies or their issuing bank’s chargeback and dispute process in attempts to keep both the purchased good or service and their money. The latter, schemes known as friendly fraud or first party fraud, are difficult for merchants to protect against because the customer provides real and verifiable data points while the chargeback process tends to favor consumers over merchants. Here I discuss some common chargebacks that merchants may see when a customer is abusing the chargeback and dispute process to commit friendly fraud as well as measures merchants can take to prevent against them.

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