The First-Party Fraud Conundrum: How to Protect Financial Institutions and Merchants

First-party fraud chargebacks hurt FIs and merchants.  

November 3, 2022 –Fighting fraudsters is tough work for FIs and merchants; that job becomes harder when the fraudster is a customer.Financial institutions and merchants in the U.S. and the U.K. experience significant first-party fraud chargeback rates, leading to high operational costs and write-offs.

For this report, commissioned by Ethoca, a Mastercard company, Aite-Novarica Group conducted qualitative interviews with 17 FIs and quantitative interviews with 302 merchants in the U.S. and U.K. This report delves into the trends in first-party fraud and a potential approach to address the issue through improved collaboration between FIs and merchants.

This 32-page Impact Report contains 16 figures and two tables. Clients of Aite-Novarica Group’s Fraud & AML service can download this report and the corresponding charts.

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