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Visa Wants to Eliminate Friendly Fraud Without Alienating Honest Consumers


Friendly fraud is a bit of a misnomer; first-party card misuse would be more accurate.

That’s because, just like other types of fraud and cybercrime, friendly fraud is anything but friendly.

And with more people conducting transactions online and purchasing digital goods, the opportunities for friendly fraud have expanded.

“As merchants look at [friendly fraud], they’re seeing it become a bigger part of their overall costs,” Mike Lemberger, senior vice president, regional risk officer for North America at Visa, told PYMNTS CEO Karen Webster.

One type of friendly fraud encompasses situations where disputes arise due to misunderstandings or buyer’s remorse, with individuals taking advantage of zero-liability policies to obtain refunds.

But there is also a more malicious form of friendly fraud, where individuals intentionally make purchases with the intent of disputing them and getting their money back.


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