GRC & Fraud Software Journal
A recent Kount anti-fraud webinar explores key topics involved in chargebacks and friendly fraud in its latest webinar:
- The three sources of chargebacks
- How to reduce operating expenses
- The value of chargeback data
- Benefits of the Kount and Chargebacks911 partnership.
- The initial segment begins with a discussion of the three sources of chargebacks:
Friendly Fraud: 60 percent to 80 percent of chargebacks are a result of friendly fraud. It’s important to note that friendly fraud extends across a continuum that ranges from malicious – purposeful cyber shoplifting – to innocent – consumers not recognizing a transaction made by a family member and canceling it.
Merchant Error: 20 percent to 40 percent of chargebacks are a result of merchant error. These can be mistakes in merchant set up, transaction data, order processing, etc. For example, chargebacks can be caused by a merchant forgetting to refund a customer’s credit card account with a return, a website error, or bad customer service.
Criminal Fraud: Approximately 1 percent to 10 percent of chargebacks are due to criminal fraud by cyber criminals using stolen credit cards and/or stolen identities.
But that’s not all: The webinar also discusses reducing operating expenses, the importance of accurate data, recapturing revenue from fraudulently filed disputes, and tons of other anti-fraud tips and techniques.