Kount: ‘Friendly fraud’ can cost you, too

GRC & Fraud Software Journal

kount logowA 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.

Watch this great webinar.

 

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