A consultancy which specializes in helping Internet retailersbetter manage chargebacks has urged merchants to start requiringsignatures for online purchases and to adopt better record keepingto avoid a rising incidence of “friendly fraud” transactions.
|“Friendly fraud” occurs when a purchase is made with a card overthe Internet and then the cardholder contacts the card issuer toreport that they never made the purchase, said Chargebacks 911.
|The consultancy reported that a recent survey had indicated theincidence of “friendly fraud” have climbed from 23% to 70% over thepast three years.
|In addition to urging online retailers to begin requiringsignatures for delivery of items sent over the internet,Chargebacks 911 urges retailer to keep more detailed transactionand account histories to help recognize fraud patterns.
|The consultancy did not comment on how such record keeping wouldsquare with PCIrequirements that generally discourage card data being held where it could be hacked and stolen.
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