42% OF GEN Z ADMIT TO COMMITTING ‘FRIENDLY FRAUD’

Summary from the TLDR Marketing newsletter

“Friendly fraud”, also known as first-party fraud, occurs when customers file a fraud claim or charge-back despite being satisfied with a purchase. Any business that accepts digital payments is a target. Research revealed that 42% of Gen Z admit to engaging in first-party fraud. The majority of them don’t realize what they’re doing is fraud and are unaware that it’s the merchant who absorbs the cost of the chargeback. This article highlights tips for brands to protect themselves including prioritizing clear customer communications, offering quick refunds, and collecting detailed records of customer transactions.