DUBLIN--(BUSINESS WIRE)--Complex technologies are creating new opportunities for fraud, according to Chargebacks911, part of Global Risk Technologies, Europe’s first chargeback remediation specialist. Pointing to the growth of frictionless payments, the company believes automated decisioning and reduced barriers to entry are fuelling the rise in chargeback rates.
New payment methods provide multiple choices to today’s consumers, including contactless payments in-store, and one-click payments online. EMV technology on physical cards, recently adopted in the US, drives fraudsters to the global online marketplace in search of profitable opportunities. After adopting EMV technology, CNP fraud grew 79% in the UK, around 20% in France, while Canada and Australia experienced similar trends.
Online anti-fraud technology today largely depends on automated responses from rule-based filters, but can result in false positives, which deter customers, while layered security protocols can harm the customer experience and raise cart abandonment. Without standardisation in technology and processes, there are far too many loopholes for fraudsters and consumers to exploit.
“Identity theft garners the most attention,” explains Monica Eaton-Cardone, Co-Founder of Chargebacks911, “but friendly fraud increased by 150% from 2009 to 2014, while chargebacks grew 55% in the same time period. This is the invisible problem of today’s technology-driven payment ecosystem and worryingly, it is transforming consumer behaviour.”
“The pressure on banks to resolve disputes faster is causing an imbalance in an industry that is almost always favourable to the consumer. 50% of cardholders who file a dispute will do it again within 90 days. This essentially means that issuers and cardholders are being rewarded for initiating illegitimate chargebacks, with processors ultimately penalised along with their merchants.”
Chargebacks911 is at MRC Vegas (booth #507) on 7-10 March and the RBTE London (stand #684) 9-10 March, providing practical education on minimising the risk and successfully disputing illegitimate chargebacks.
About Chargebacks911
Chargebacks911 is a division of Global Risk Technologies, focusing on chargeback mitigation and risk management. It specialises in servicing Internet merchants and acquiring banks, offering dispute response solutions and deep analytics. Chargebacks911 works with its clients to help them keep dispute rates down and retain their ability to accept credit cards. For more information, visit www.chargebacks911.com and www.globalrisktechnologies.com
