While having one’s card details stolen or used to make a fraudulent payment is undoubtedly stressful and inconvenient, it’s relatively straightforward for an individual to get the funds refunded through their bank. For merchants, fraudulent payments represent a rather different challenge. For a consumer to get their money back, their bank collects a refund from the merchant. But, if the merchant has shipped the goods or performed the service, they often have little recourse to recover costs.
Most people will at the very least know someone who has been the victim of online fraud. Recent figures from Cifas revealed that a record-breaking total of 89,000 cases of fraud were recorded in the first six months of the year in the UK. The study found that while the number of identity fraud attempts against bank accounts and plastic cards has fallen, these still account for more than half of all cases. Last year alone, payment card fraud amounted to $21.84 billion globally.