As part of Digital Transactions' recent piece on chargeback fraud, they interviewed Vesta SVP of Operations, Nadir Kiem to get his take on this rising trend in the fraud space.
Here's an excerpt from the article:
...The pandemic lent impetus to a relatively new scenario: online ordering with curbside or in-store pickup. It’s a popular option for both merchant and customer. Still, while consumers who are who they say they are generally get their goods even sooner, so do customers who “borrowed” a parent’s or sibling’s card.
This so-called friendly fraud is the bane of the industry. Until the onset of COVID, such cases accounted for 25% to 30% of all chargebacks, according to Nadir Kiem, senior vice president of operations at Vesta Corp., a specialist in fraud protection. Now, he says, that number is 48%.
Vesta’s Kiem sees a half-full glass. “I do think chargebacks will subside, but I also don’t think [they] will return to the pre-Covid level,” he says.
Continue reading the full article over at Digital Transactions