Fraudology is presented by Sardine.
The industry has long needed a “rebrand” from the term “friendly fraud”. And thanks to the efforts of several people in the industry, the shift from that term to “1st party misuse” is starting to catch on. Especially because “friendly fraud” is no longer concentrated to chargeback claims. We are now seeing other forms of abuse/theft targeting online retailers, with sometimes devastating losses associated.
Last week, Karisse was on a webinar for the MRC with Uri Arad, co-founder of Identiq talking about “Friendly Fraud 2.0 - Refund claims fraud, “liar buyer”, and promo code abuse”. The webinar was so full of information, that they didn’t get to answer the many questions from the audience. So, Karisse offered to answer them on today’s podcast episode. Today, with the help of Uri via written answers, will provide answers to the following questions:
- Is promo fraud the new “Friendly fraud”?
- Is refund (claims) fraud & promo abuse actually growing or are we just better at detecting it now?
- Comments on disputing chargebacks; Our company disputes all CBs, and has success with banks. Still thinking we are losing $$ - thoughts?
- What about the role of regulations like Reg E & Reg Z, particularly in the US that aid in some of this behavior (1st party misuse)?
- Is promo code abuse “OK”when it’s built into the business case for the marketing activity from the outset?
There were still 2 more questions we couldn’t get to on this episode, so we’ll include them next week. If you have more questions on this topic, let Karisse know via LinkedIn message or email.
The original webinar w/ Karise & Uri is available to MRC members on demand on their member resource page.
Fraudology is hosted by Karisse Hendrick, a fraud fighter with decades of experience advising hundreds of the biggest ecommerce companies in the world on fraud, chargebacks, and other forms of abuse impacting a company's bottom line.
Connect with her on LinkedIn
She brings her experience, expertise, and extensive network of experts to this podcast semi weekly, on Tuesdays and Thursdays.
Mentioned in this episode:
2023-q4-postroll sardine 1
