The fight against ‘friendly fraud’
"Friendly fraud," also known as chargeback fraud, is proving to be a significant and evolving challenge for retailers, underscoring the urgent need for advanced fraud prevention strategies. This deceptive practice occurs when customers request refunds for online purchases while keeping the items, leading to financial losses for businesses. Recently, the U.S. Department of Justice unveiled a scheme involving the Artemis Group, a cybercrime ring that targeted major retailers like Target, Amazon, Walmart, and Home Depot. In another example, a Quebec coffee shop encountered difficulties when customers disputed their high-value espresso machine purchases, despite having clear proof of the transactions. With the National Retail Federation estimating annual losses of $25 billion from friendly fraud, this issue highlights the growing need for innovative security solutions and proactive measures. Addressing this challenge not only protects retailers but also ensures a more secure shopping environment for all.