Stop chargeback fraudsters with’s friendly fraud solution.

Combating the confounding nature of friendly fraud requires new approaches and technologies to prevent further erosion of your margins. With powerful technologies and transparent policies, you do not need to settle for either providing a great customer experience or stopping friendly fraud – you can have both. With just five tools, you can have a friendly fraud solution that stops further deterioration of your hard-earned profits.

The New and Improved 3DS2

Addressing friendly fraud effectively and sustainably means bringing the issuing bank into the authentication process. A “new” tool to change the dynamics of the CNP process is 3D Secure, version 2 (3DS2)

Previous versions of the 3DS process were overly cumbersome and required additional steps. Fortunately, that is no longer the case, and the 3DS2 processes have been streamlined and are not materially different from non-3DS checkout processes. 

With new infrastructure, improved authorization rails, and passing more data in real-time to issuers, 3DS2 promises a better means to address friendly fraud. Plus, by sharing more contextual data between the parties and the issuing bank assuming full liability will increase authorization rates, and maintain a seamless buying experience. In addition, 3DS2 aids in compliance with the EU’s PSD2/SCA mandate

Additional Practices to Prevent Friendly Fraud

Preventing friendly fraud is not as simple as instituting strict return and refund policies. Typically these result in higher levels of fraud as customers push back on the onerous policies with even more chargeback fraud. Instead, instituting a transparent, fair, and expedient return and refund policy will encourage your customers to go this route instead of contacting their card company.

There are many improvements, small and large, you can make to address the rising levels of friendly fraud, including: 

  • Having more detailed line item product descriptions on purchased items.
  • Extending live customer service hours and faster SLAs on responsiveness to inquiries.
  • Simplifying order cancellations – especially for subscription services.  
  • Proactively refunding customers if unable to meet the expected delivery date. 
  • Providing delivery tracking and confirmation on all delivered goods.

Developing more proactive procedures throughout the customer’s journey demonstrates that their post-sale experience is just as important as the initial purchase experience. Because of the uniqueness of the fraud, every company has to find the right balance in their customer service policies to combat friendly fraud. 

Build Your Defense on a Fraud Platform

Implementing one-off solutions to address fraud can lead to a haphazard effort that results in more complexity, overlap, and sub-optimal results. A fraud prevention platform provides an integrated approach to stopping friendly fraud. The platform needs to include five key components:

  1. Robust friendly fraud monitoring program
  2. Specialized AI deep learning models targeting friendly fraud
  3. 3DS2 technology
  4. Anonymized consortium data for richer data sets and industry-specific multi-merchant insights
  5. Linked Entity Analysis to detect friendly fraud and other types of fraud rings 

As so often is the case in solving issues through technology, the genesis is better utilization of data, and specifically contextual data. Improved contextual data provides the AI engine with the fuel for deeper and faster insights into customer activity and signs of potentially fraudulent behavior. 

The & PAAY Friendly Fraud Solution

We provide solutions to detect and prevent friendly fraud for organizations of all sizes. In addition, we have partnered with PAAY, the leading 3DS2 provider, to bring our combined strengths to fight friendly fraud. 

Our key differentiator is a flexible set of tools to meet your unique and challenging requirements. We are fit-for-purpose, offering enterprise-strength customized solutions for large complex organizations. With our leading-edge architecture, you gain greater flexibility and an unmatched toolset to fight friendly fraud: 

  • At the core is our enterprise analytics and data mining software with custom deep learning algorithms to reveal hard-to-detect chargeback fraud and to optimize your business processes.
  • First-party fraud monitoring includes detailed tracking of good and bad customers and audit trails of transactional outcomes.
  • We are a nexus point, an entryway to third-party providers, like PAAY’s market-leading 3DS2 solution, for creating a tailor-made solution built to your needs. 
  • Our Collective Intelligence Network is unique in its overall reach, crossing a variety of industries and countries. It can deliver new insights to your organization on fraudsters that have committed friendly fraud with other merchants.
  • Linked Entity Analysis that identifies relationships across millions of transactions for early detection of potential fraudsters. 

PAAY’s 3DS2 technology enables the exchange of greater contextual data between merchants and the cardholder’s banks. Utilizing PAAY’s 3DS2 tool provides: 

  • No false declines
  • Increased authorization rates
  • Compliance with PSD2/SCA 
  • Frictionless customer experience
  • Secure – PCI compliant

Lastly, PAAY’s 3DS2 technology works seamlessly in’s platform to lower your total cost of fraud and improve your bottom line. 

Read more on friendly fraud, and how you can fight back in our eBook – “Fighting Friendly Fraud with a Layered Defense and 3DS2.” 

We know your organization’s needs are unique. Our fraud prevention professionals can design a solution that meets your specific requirements. Contact us today to talk with an expert on how we can help your company reduce friendly fraud.