Retailers are bracing for a significant surge in "friendly fraud" this holiday season, with an expected 25% increase between Thanksgiving and Cyber Monday. This type of fraud, where legitimate customers dispute transactions after a purchase, is projected to cost businesses a staggering $103 billion in 2024 alone, according to an analysis by global payments technology innovator ACI Worldwide.
Often mistaken for genuine fraudulent activity, these disputes represent a growing challenge for the retail sector. The average value of a "friendly fraud" item during this year's holiday period is anticipated to reach $291, marking a 21% year-on-year increase.
