News

Consumers admit to submitting false fraud disputes for chargebacks

Tuesday 21 December 2021 09:45 CET | News

Sift, a US-based fraud prevention company, has released its Q4 2021 Digital Trust & Safety Index, which found that nearly 1 in 5 (17%) people have committed friendly fraud.

Based on data from Sift’s global network of over 34,000 sites and apps, and a survey of more than 1,000 US consumers, the report examines how chargebacks and ‘friendly fraud’ have grown in 2021 alongside the digital commerce surge.

Disputed purchases and chargebacks are the cost of doing business online in today’s digital economy. According to Sift’s findings, 65% of consumers report having disputed a purchase in their lifetime, 62% of whom have done so in the past year, while 86% say they are likely to file a dispute again in the future. Consumers most frequently file disputes for purchases made with omnichannel retailers and ecommerce merchants, with 26% claiming they file disputes with the former, and 24% with the latter.

At the same time, the volume and value of digital disputes being filed is on the rise. Across Sift’s network, average daily chargeback cases (i.e., number of claims filed) increased by 19% between Q1 2020 and Q1 2021, while the average value of a chargeback increased 21% to USD 293.04. More than two in five (42%) of surveyed consumers who have filed disputes did so due to true fraud, for example, unauthorised purchases made with their payment information.



Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: Sift, research, fraud prevention, chargebacks, friendly fraud, ecommerce, merchants, online payments
Categories: Securing Transactions | Digital Identity, Security & Online Fraud
Countries: World
This article is part of category

Securing Transactions