We live in a society where many people want to get something for nothing. This is especially true in the retail world. Rather than paying for merchandise received, some deceitful consumers would rather “steal” their purchases by either claiming their credit card was stolen and they were charged for items they didn’t order or by stating they never received the item in the mail. Whatever the excuse, this causes an unwanted financial drain on the unsuspecting merchant. Not only do they lose the goods they shipped, but they also lose out on the amount they would have made on the sale.
Digital thieves have gotten creative about the ways they swindle gullible online retailers. In one case of e-commerce fraud, a man purchased merchandise from an Internet merchant and upon checkout, he registered with many different variations of his name and address. The hustler then initiated chargebacks claiming he never received the products. The small business owner grew suspicious and asked the police to launch an investigation. The authorities discovered that the con man was buying and reselling the products he purchased.
Although you may think something like the above scenario can never happen to you, think again. Chargeback-related fraud is on the rise as scam artists grow more sophisticated in their schemes to defraud merchants. The Better Business Bureau (BBB) offers the following tips for fighting friendly fraud:
- • Use a shipping service that tracks delivery. Some shipping firms provide tracking information and signature confirmation. This information can help verify whether or not the customer really received the product.
- • Deactivate or deny access to products. If you are a retailer who offers downloads or access to websites, you can stop a scam artist by denying access to your services.
- • Present a solid case to the credit card company. If you are diligent about maintaining records – including records of delivery or reimbursement and your return policy – this will greatly assist the credit card company and increase your chances for a favorable resolution in the case of a chargeback.
