COO of Chargebacks911 Discusses Friendly Fraud on Business for Breakfast Radio
Business for Breakfast Radio chatted with Monica Eaton-Cardone, co-founder and COO of Chargebacks911, on the topic of friendly fraud.
Firstly, Eaton-Cardone explains that there are three types of fraud;
- Criminal Fraud
- Consumer Fraud
- Friendly Fraud
It is the third type of fraud, friendly fraud, that has become a huge problem for online merchants in recent years.
Eaton-Cardone explains that friendly fraud is a very deceiving name, as the act is not friendly at all. She describes how someone intends to get “something for nothing.”
However, the consequences of these fraudulent claims are often not understood by consumers. Eaton-Cardone states that there are a “whole host of consequences that consumers don’t realize they will be liable for if they are perpetrators of this crime.” For example, the individual can be prosecuted or credit rating can be damaged.
With the exponential growth of friendly fraud over the past couple of years, card associations such as Visa and MasterCard have acknowledged the increasing trend, introducing new regulations to protect merchants and encourage them to dispute fraudulent claims.
“Friendly fraud has grown about 41% in the last two years alone. So as a result, there are new regulations and guidelines that are actually promoting awareness and giving merchants more and more opportunity and freedom to fight friendly fraud.”
With this in mind, it is absolutely paramount that merchants understand the rights they have and take action to fight back against the criminals that are stealing their hard-earned revenue. Eaton-Cardone emphasizes the importance of merchants documenting all their activities, such as obtaining a proof of delivery, to better equip themselves to win the fight.
To listen to the segment in full, click below: