In 2023, chargeback fraud continues to pose a major threat to the global economy. This type of fraud occurs when a fraudster makes an unauthorized purchase with a stolen credit card and then initiates a chargeback request from the credit card issuer in order to receive a refund.
Chargeback fraud is a serious problem for many businesses, as it can cost them a great deal of money in chargeback fees, as well as negatively affecting their reputation. To combat this type of fraud, many businesses are now employing a variety of strategies and technologies. These include utilizing fraud analytics, AI-powered solutions, biometrics, and 3D secure solutions.
In addition, new regulations such as the Payment Card Industry Data Security Standard (PCI-DSS) are also being implemented in order to ensure that businesses remain compliant and reduce their exposure to fraud. Many payment providers are now offering chargeback prevention services, which help to identify and prevent fraudulent transactions.
Overall, the state of chargeback fraud in 2023 is still a major concern for businesses, but with the right strategies and technologies, it can be effectively managed.