Chargebacks911® COO Offers Expertise for Major Trade Publication
eCommerce fraud is on the rise across the board, including industries in which merchants may not have expected it. In a new feature for Footwear News, Chargebacks911 COO Monica Eaton discusses the growing fraud problem confronting the fashion industry.
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From bulk buying and counterfeit products to cybersecurity threats, online fraud is a wide-spanning problem. Some of the biggest threats may catch retailers off-guard, though. For example, friendly fraud is a major source of revenue loss, and the problem is getting bigger every year.
Two of the biggest obstacles to progress on the issue of friendly fraud are complexity, and the general opaqueness of the matter. But, as Monica explains in the piece, merchants can’t afford to simply ignore the matter. “While engaging in representment can be a very complex and time-consuming process, merchants can’t afford to allow friendly fraud to go unchallenged.” she says.
Despite the complexity of this problem, merchants need to take a proactive stance. Left unaddressed, chargebacks can very quickly chip away at a merchant’s long-term profitability, potentially jeopardizing the survival of the business.
“Research suggests that roughly 50% of all cardholders who get away with friendly fraud will do it again within 90 days,” Monica explains.
