Friendly Fraud

Friendly fraud, also known as chargeback fraud or cyber-shoplifting, is a deceptive practice where a consumer intentionally disputes a legitimate credit card transaction to receive a refund or avoid paying for a product or service. Unlike true cases of fraud, friendly fraud involves individuals who have willingly made a purchase, received the item or service, but later claim that the transaction was unauthorized or fraudulent. This type of fraud can occur in various industries, including e-commerce, online gaming, and subscription services. It often puts businesses at a disadvantage as they face financial losses through chargeback fees and potential loss of merchandise or services. Friendly fraud has become more prevalent with the rise of e-commerce and easy access to digital products or services, making it challenging for merchants to combat this form of deceitful behavior.