The chargeback exists to protect consumers. And it assumes that all consumers are good actors. But what happens when they’re not?

First party fraud is increasing by 30% every year.

It’s hard to detect, accounts for more than 75% of chargebacks, and costs US businesses more than $100B per year.

Shanthi Shanmugam, CEO of dispute automation platform Casap, joined guest-host Brooke Smith to discuss how payment providers, ISVs, and merchants can fight first-party fraud.

They covered:

• Why first-party fraud isn’t detected by traditional fraud tooling
• The tradeoff between friction and fraud, and how ISVs can strategically insert friction to reduce first-party fraud
• How modern technology like first-party fraud scores can identify high-risk consumers
• Why some customers file chargebacks when they’re confused – and a simple strategy to identify (and fix) the most likely causes
• Specific strategies to reduce chargebacks on subscription payments

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