In a survey of 1000 US consumers commissioned by Trustev, 25% of respondents have no problems with customers committing “friendly fraud” -- purposefully disputing charges -- and 5% of those surveyed admitted to openly admitted to having committed friendly fraud in the past.
17% said they have disputed charges without contacting the online merchant
61% said they return items that they purchase from online merchants, while 38% said they “never” do
7% of consumers have lied about the condition of a product so that they could return it
Out of those who disputed a charge or lied about receiving a product, 8.6% said it was for items more than $100
The 2014 holiday season was wildly successful for online retailers, but return fraud is still is a major concern. The National Retail Federation said that retailers could expect to lose $3.9 billion in return fraud alone this holiday season, up from $2.9 billion last year. Annually, the retail industry loses $10 billion to return fraud.
Friendly fraud is a major part of return fraud -- it’s when a customer returns an item that had nothing wrong with it, or disputes a charge for a purchase they made. 5% of respondents in our survey openly admitted to committing friendly fraud, which shows that customers may not understand or care about the difficulties merchants deal with -- namely chargebacks.
Trustev’s antifraud technology can help e-commerce companies decrease fraud and chargebacks, while increasing revenues as well.