Online Retailers vs. Fraud: The $11M Comedy of Errors – How First-Party Fraud Steals the Show!
First-party fraud is on the rise, with online merchants losing nearly $11 million each to fraud last year. Consumers are increasingly attempting chargeback fraud and refund abuse, with 64% of businesses expecting more fraud in the next year. Despite the risks, many merchants prioritize customer loyalty over cracking down on fraudulent behavior.
Hot Take:
Well, folks, it seems like fraudsters have taken the phrase “shop till you drop” a bit too literally, dropping a whopping $11 million hole in merchants’ pockets! The real kicker? Your friendly neighborhood shopper might just be the culprit, with first-party fraud on the rise. It’s like trusting your cat to guard the fish bowl—looks innocent, but the flippers are missing…
Key Points:
- Merchants lost an average of $11m each to fraud last year.
- 77% of surveyed professionals reported an increase in fraud volume.
- First-party fraud is now a significant threat, with chargeback fraud leading the charge.
- 61% of respondents cited card not present (CNP) fraud as most costly.
- UK consumers account for 51% of global first-party fraud cases.
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