copy and paste
http://redtape.msnbc.msn.com/_news/2010/11/19/6345525-friendly-fraud-a-hassle-for-you-too?lite
When a consumer claims fraud, a process known as a "chargeback" begins.
Until recently, banks were eager to honor such requests, and often bragged that identity theft incidents were hassle-free for consumers.
But an increase in friendly fraud has forced banks and merchants to take a closer look at fraud claims, in some cases asking consumers to sign affidavits and have them notarized, before issuing credits.
Even after providing such evidence, merchants and consumers are still subject to a quasi-adjudication process called "re-presentment," with the consumers' bank as the ultimate arbiter.
If the bank sides with the merchants, the consumer is forced to pay -- something that's become much more common lately, says fraud expert Julie Fergerson, who works for Ethoca.com, a fraud-prevention company.business development for RMS, said merchants have gotten wise about gathering more evidence in anticipation of fraud claims. One key piece of evidence: Those signed delivery slips from UPS or FedEx.
"The thing that is interesting is that banks are getting much tougher on the consumers and e-commerce merchants are starting to win some of the time, when the consumer says 'I didn't do it,' said Fergerson, longtime executive at the Merchant Risk Council, an industry association designed to fight fraud.
"It used to be an automatic, merchant loses every time. Now it is much harder for the consumer."
That is evidenced by the "win" rates for merchants in the arbitrations, which are rising quickly, according to an annual Merchant Risk Council survey. It found that consumers lose the argument 44 percent of the time now, up from 30 percent three years ago.
Fighting fraud with Facebook
Part of the reason: Many merchants now outsource the re-presentment to a company named RMS - Receivable Management Services. Darrel Hewson, vice president
"We do look for delivery receipts and other validating data points," Hewson said. "We're always asking how to make sure we have data that can support the client's case."
You might be surprised how far the company will go: Hewson said there is now abundant friendly fraud in the travel industry, and one of his company's favorite evidence-gathering tools is Facebook.com.
"You might have Daryl take a trip and then initiate a chargeback and say, 'That wasn't me.'
But then he posts on Facebook about what a great time he had.
We look for that information, and if we find it we'll use it. … (think feedback here for ebay sales)
Criminals aren't always very smart."
anyways carry on regardless I am pretty sure that if the figure involved for the chargeback was $220 or $2200 then the advice here from others would have differed.
I opine that I would rather bone up on the chargeback process defending/trying to defend a $22.00 claim and adjusting my verification protocols/shipping process based on the outcome of that case instead of not contesting any of the cheapies and waiting for the big kahuna claim and then heading on in blind with no chargeback experience at all........
TELL ME AND I WILL FORGET, SHOW ME AND I MAY REMEMBER,, INVOLVE ME AND I WILL UNDERSTAND Confucius 450bc
