Friendly fraud, also known as friendly fraud chargeback occurs when a consumer makes an Internet purchase with their own credit card and then issues a chargeback through the card provider after receiving the goods or services. When a chargeback occurs, the merchant will always be responsible, regardless of what they did to verify the transaction. The challenge with friendly fraud is that there is no way to verify the authenticity of the transaction, which is in fact legitimate, because the consumer is the one that is not legitimate.
Friendly fraud is a very real problem to businesses and merchants, and LexisNexis reported that merchants are paying $2.33 for every $1 lost in fraudulent transactions.
Read more about Friendly Fraud: History
Famous quotes containing the words friendly and/or fraud:
“However much we may differ in the choice of the measures which should guide the administration of the government, there can be but little doubt in the minds of those who are really friendly to the republican features of our system that one of its most important securities consists in the separation of the legislative and executive powers at the same time that each is acknowledged to be supreme, in the will of the people constitutionally expressed.”
—Andrew Jackson (1767–1845)
“There exists in a great part of the Northern people a gloomy diffidence in the moral character of the government. On the broaching of this question, as general expression of despondency, of disbelief that any good will accrue from a remonstrance on an act of fraud and robbery, appeared in those men to whom we naturally turn for aid and counsel. Will the American government steal? Will it lie? Will it kill?—We ask triumphantly.”
—Ralph Waldo Emerson (1803–1882)