Quantifying the challenge of
friendly fraud
See how merchants are navigating friendly fraud in the
2025 Merchant Fraud Journal & Verifi Report
First-party misuse continues to see industry-wide growth
More than 6 in 10 merchants cite an increase in first-party misuse (aka “friendly fraud”) over the past year. Get our latest report, published with Merchant Fraud Journal, to learn how you can fight it.
2.9%
revenue loss by merchants using in-house tools to combat fraud, versus 1% by merchants using third-party tools
20%
of merchants using in-house tools report that they struggle to win fraud-related disputes
77%
of merchants report that card brand Compelling Evidence updates have successfully blocked first-party misuse disputes
Large merchants are feeling the difference
2/3 of merchants with annual revenues greater than $1B use in-house dispute management methods rather than third-party services
This results in up to 34% greater revenue loss versus merchants who use third-party platforms to manage disputes
Source for all metrics: Quantifying the Challenge of Friendly Fraud, 2025
Understanding first-party misuse
As first-party misuse continues to grow, the Merchant Fraud Journal report offerseducational insights and unbiased research in conjunction with Verifi.
Key takeaways and insights within the report include:
- Leaning on data as a fundamental tool in the fight against first-party misuse
- Key industry players recognized this potential and updated
- Third-party solutions will be integral to success
- A data-centric landscape impacts all merchants
Embracing advanced technology and data-driven strategies will be essential in navigating the complexities of modern fraud prevention.
