Global eCommerce Transactions Set to Soar by 14% in 2023 Holiday Season: Beware of Friendly Fraud

Global eCommerce Transactions Set to Soar by 14% in 2023 Holiday Season: Beware of Friendly Fraud

The upcoming holiday season is poised to witness a significant surge in global eCommerce transactions, projected to rise by an impressive 14%. However, amidst the anticipated surge, businesses must remain vigilant against a growing threat: friendly fraud.

What is Friendly Fraud?

Friendly fraud occurs when a legitimate customer disputes a transaction after receiving the goods or services, claiming they were unauthorized or not received. Unlike traditional fraud, where criminals steal credit card information or make fraudulent purchases, friendly fraud is often perpetrated by seemingly trustworthy individuals. This makes it harder to detect and can lead to financial losses for businesses.

Understanding the Motivations

Customers may engage in friendly fraud for various reasons, including buyer's remorse, disputes over charges, or a desire to receive a refund or replacement. It is essential to recognize their motivations to implement effective fraud prevention measures.

Protecting Your Business

To safeguard your business against friendly fraud, consider implementing the following strategies:

  • Enhanced Customer Verification: Implement measures to verify the identity of customers, such as address verification, phone verification, and email confirmation.
  • Risk Assessment Tools: Utilize technology to assess the risk level of each transaction based on factors such as the customer's IP address, billing address, and purchase history.
  • Educate Customers: Clearly communicate your return and refund policies to customers to avoid misunderstandings and disputes.

Conclusion

The impending holiday season presents immense opportunities for eCommerce businesses. However, it is crucial to be aware of the threat of friendly fraud and take proactive steps to protect your business. By implementing robust fraud prevention measures and understanding the motivations behind friendly fraud, businesses can navigate the holiday season with confidence and maximize their profits.

To further strengthen your fraud prevention strategy, consider partnering with Fundingo, a leading provider of loan management and origination software. Our solutions leverage advanced analytics and machine learning to detect and prevent fraudulent transactions, allowing you to confidently embrace the surge in holiday eCommerce.

Schedule a demo today by calling toll-free at (877) 227-7271 or go here https://www.fundingo.com/contact-us/

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