Page 19 - GS210402

Views

methods include account takeover, able to prevent it from happening in the first place. Yet trying to mitigate the risk
which can also result in fraudsters of gift card fraud puts them in a tough spot. Manually reviewing transactions
gaining access to multiple other for indicators of potential fraud takes time, and that's one thing retailers
connected accounts. Loyalty and won't have as they work tirelessly to ensure their businesses continue trading
rewards accounts are also popular seamlessly despite the restrictions in place to curb the spread of COVID-19.
targets, as the accrued points can be
easily converted into gift cards. Of course, the fact remains that gift cards are a lucrative pursuit for retail
businesses. They can benefit merchants and consumers alike, and as a result
And different types of gift cards they're not set to disappear anytime soon. Merchants just need to ensure that
make it easier to commit fraud. For their businesses are protected from attempts to use gift cards as a method of
example, digital or electronic gift fraud, so they can make the most of this profitable payment method. If they are
cards are easy to use and appealing struggling with this, their best option is to contact a third-party provider that
for retailers, but the fact that the specializes in reducing fraud and chargebacks.
"cards" are intangible means they can
be fraudulently sold and converted to Monica Eaton-Cardone, COO and co-founder of Chargebacks911, has worked for over a decade
cash even more quickly.
to educate merchants and financial institutions about hidden threats in the rapidly changing
The risk is greater still if a merchant's payment fraud landscape. Leading Chargebacks911, she established Europe's first chargeback
database of available card numbers is remediation specialist to tackle the £100 billion ($137.42 million) chargeback fraud problem.
breached. In that situation, fraudsters She was one of the earliest and most vocal voices to warn of the hidden risks of friendly fraud,
could gain access to more lucrative including how evolving consumer behavior has caused a perpetual cycle of rising fraudulent
data than if the cards in question were actions. Founded in 2011, Chargebacks911 is the first global company fully dedicated to mitigat-
physical cards, and the merchant ing chargeback risk and eliminating chargeback fraud. For more information on Chargebacks911
could be stuck honoring an untold and the company's Fi911 back-office technology devised for the banking and payments industries,
number of cards that were never please visit https://chargebacks911.com.
purchased.

The chargeback response
All this means that not only do
customers lose out when it comes to
gift card fraud, but so do merchants,
especially when customers instigate
chargebacks to reclaim funds lost to it.
This can be costly if left unaddressed.
It can leave companies refunding
purchases, paying processing fees
and losing disputed goods – in this
case, purchased gift cards.

Also, mitigating chargebacks is now
more important than ever. With many
merchants moving into the online
space in response to COVID-19, there
is much more scope for problems to
occur with orders and deliveries,
meaning that genuine chargebacks
are more likely to take place. At the
same time, friendly fraud (fraudulent
chargebacks) has become much
easier to instigate. As a result, some
industries are facing 10 times the
amount of chargebacks than prior to
the pandemic.
Don't give up on
gift cards just yet
To stop chargebacks associated with
gift card fraud, merchants must be

19