Monica Eaton, Founder of Chargebacks911 and a globally recognized leader in the payment and technology field, was recently asked to contribute her insights in a piece regarding the threat posed by fraud on dating apps and sites.
The Cyber Express is “a handbook for all stakeholders of the internet.” The site is dedicated to providing information security professionals with the latest news, updates and knowledge they need to combat new and developing cyber threats.
Dating sites and apps might seem like a frivolous matter to some. However, this space is big business. Revenue in the online dating industry is projected to reach over $3 billion in 2023. 440 million people are predicted to use one of these services globally by 2027. However, as Monica notes, this growth is not without its downsides.
“With great opportunity comes new challenges for online businesses vending love this time of year, including a fast-growing problem within the dating space and E-commerce in general: chargebacks,” she explains.
Dating site users are showing a growing penchant for abusing the chargeback practice. For instance, one might pay for a service, decide it's not for them, and file a chargeback to recoup their money.
“Others might sign up for a free trial, then forget to cancel before being charged for service. The buyers are still not entitled to chargebacks in either of these scenarios, but there’s more nuance to the situation than outright fraud, resulting in unnecessary chargebacks being filed.”