Friendly fraud – Ways to prevent it

Friendly fraud - Ways to prevent it

As of February 2020, there are over 2.8 billion credit cards in the world. It is a result of an increased interest of users in virtual banking and encouraging customers to make purchases online provided by banks. Despite all attempts by financial institutions to improve the security of all participants in an online transaction, the risk of fraudulent transactions is still high.

One example of improper gain is a friendly fraud.

 

Friendly fraud

Imagine a situation where a customer purchases a product or service and pays by credit card online.

An ordinary user, after making a payment, receives the goods and leaves a review on the site. Fraudsters, after the merchant sending the goods, declare that they did not make the payment.

At the same time, they either ask for a refund from the business owner or write an application to the bank, claiming that their data was…

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