How to Avoid Being a Victim of This Growing Scam

Unpacking the Unfriendly: What is Friendly Fraud?

We’ve all been there: you swipe your card a little too quickly online, buy that extra pair of shoes you totally don’t need, and then regret it later. Maybe you try to cancel the order, but it’s already shipped. Ugh. But what if you could get that money back, even after receiving the item? That’s the shady world of “friendly fraud.”

Friendly fraud is a type of credit card fraud where a cardholder disputes a legitimate charge with their bank. It might sound harmless, but for businesses, it can be a major financial burden. And guess who ultimately pays the price? You, the consumer, in the form of higher prices and stricter security measures. So, how does this scam work, and how can you avoid accidentally getting caught up in it?

The Deceptive Doings of Friendly Fraudsters

There are a few different ways friendly fraud can play out. Here are a few of the most common:

• The “Accidental” Shopper: This is where someone claims they didn’t authorize a purchase, even though they did. Maybe they forgot about the order, or maybe they’re trying to get out of paying.
• The “Not-Received” Routine: The cardholder claims they never received an item, even though it was delivered. This can be done by intercepting packages or using fake tracking numbers.
• The “Return Rebate”: This one involves returning an item and then claiming they never received a refund. Sneaky!

Why Do People Do It?

There are a few reasons why people might resort to friendly fraud. Maybe they’re struggling financially and see it as a way to get some quick cash. Maybe they’re unhappy with the product or service and want to get out of paying. Whatever the reason, it’s important to remember that friendly fraud is a crime.

Don’t Be a Victim: How to Avoid Friendly Fraud

The good news is that there are steps you can take to avoid accidentally committing friendly fraud. Here are a few tips:

• Be Mindful of Impulse Purchases: Take a beat before hitting “buy” on that non-essential item. Will you really use it? Can you wait and save up for it?
• Review Your Statements Regularly: Get in the habit of checking your credit card statements for any unfamiliar charges. Catching something fishy early can save you a lot of hassle.
• Keep Records of Purchases: Save your receipts and confirmation emails for online orders. This will come in handy if you ever need to dispute a legitimate charge.
• Communicate Clearly with Merchants: If you have a problem with an order, contact the merchant directly first. Most businesses are happy to work with you to resolve an issue.

The Bottom Line: Fight Fraud, Protect Your Finances

Friendly fraud might seem like a victimless crime, but it has real consequences. By understanding how it works and taking steps to avoid it, you can protect yourself and your finances. Remember, financial security is a key part of Fierce Living. So, be informed, be mindful, and don’t let scammers win!

Additionally Fierce:

• Talk to your friends and family: Spread awareness about friendly fraud. The more people who know about it, the fewer victims there will be.
• Report suspicious activity: If you think you’ve been a victim of friendly fraud, report it to your bank and the Federal Trade Commission (FTC).

By working together, we can make online shopping a safer and more secure experience for everyone. Now go forth and slay the scam game like the fierce financial boss you are!

Got a friendly fraud story to share? Spill the tea (without throwing anyone under the bus) in the comments below!