The figures from Financial Fraud Action UK reveal that financial fraud losses grew by 26% in 2015. The research further highlights the growth in payment card fraud, up 18% over the same period to GBP 568mn and the value of CNP fraud, including ecommerce, which was up 20% to GBP 399mn.
Chargebacks911 has seen friendly fraud rise 150% since 2009, while chargebacks grew 55% in the same period. Part of the cost problem for merchants is that when they are hit by fraud they do not fully understand the reason codes reported back to them by the issuing bank.
Monica Eaton-Cardone, co-founder at Chargebacks911, said the figures are illustrating a worrying upward trend in online fraud. The adoption of EMV in the US is pushing more fraudsters online, while complex new technologies have made it difficult for merchants to offer omnichannel experiences while remaining secure.
She added that once a merchant understands the true reasons behind chargebacks against them, they can put in place the necessary steps to successfully dispute fraudulent claims, and best practice processes to minimise the risk of them happening again.
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