63% of merchants report an increase in friendly fraud year over year1
Also known as first-party-misuse, friendly fraud occurs when a cardholder disputes a legitimate transaction with their issuer. This includes customers refuting valid purchases such as long forgotten recurring subscriptions, or children given access to use their parent’s card to make purchases with parental approval. As none of these purchases are considered unauthorized by the cardholder, the chargebacks negatively impact merchants in both cost and time spent responding to false claims.
Although friendly fraud is often unintentional, recent studies show intentional first-party-misuse is on the rise1.
67%
of frequent online shoppers wanted additional detail on their purchase2
40%
of online consumers have admitted to committing friendly fraud3
36%
of consumers would consider committing friendly fraud again4
Verifi’s PREVENT solution suite empowers merchants to bridge the communication gap with transaction transparency and data sharing to automatically deflect confirmed first-party-misuse disputes before chargebacks are initiated.
To learn more about how to prevent friendly fraud, optimize prevention tools, and protect revenue, contact us or check out Verifi’s free educational tools:

Merchant Fraud Journal Whitepaper: Quantifying the Challenge of Friendly Fraud Whitepaper
In it you’ll find:
- How friendly fraud presents itself
- Tips on how data storage and prevention can help prevent friendly fraud
- Data on the effectiveness of 3rd party dispute management solutions

WEBINAR
Level Up Your Dispute Operations
Disputes are often underplayed as a business issue with understaffed teams and responsibilities for dispute operations falling to a wide variety of teams. What if there was a solution to centralize and streamline your dispute operations? Watch our latest Verifi+ Session to learn more about disputes.

2025 Global eCommerce Payments & Fraud Report
In it you’ll find:
- The scale and type of fraud seen in the global marketplace.
- How fraud changes based on the size of the business.
- A robust set of performance benchmarks that merchants can use to help optimize their fraud management and prevention practices.
Sources:
1Verifi’s 2024 Global Fraud & Payments Report
2Aite Report: Improving The Dispute Experience: Transparency Is Power – May 2020
3,4Ravelin – Friendly fraud trends: Brazen consumer attitudes revealed in Ravelin’s Consumer Fraud Survey