Clean fraud
Clean fraud
(also friendly fraud)
Clean fraud definition
Clean fraud, also called “friendly fraud,” happens when someone buys something with their real credit card, then says they didn’t buy it to get the money back. They exploit the chargeback system to reverse the payment, and they end up with the item without paying. This kind of fraud is sneaky because the people doing it act like regular customers.
Examples of clean fraud
- A customer purchases a high-end electronic gadget using their valid credit card and later disputes the charge, claiming they never received the item, even though the delivery was successful.
- A person books a luxury hotel stay for a weekend getaway, pays with their credit card, and after enjoying the stay, disputes the charge.
- Imagine a person who buys a concert ticket, attends the event and then initiates a chargeback. They assert that their card was used fraudulently to buy the ticket.
- A customer orders clothing online, receives the items, and subsequently disputes the charge. They state the transaction was unauthorized.
- Another example of clean fraud is when a consumer subscribes to a digital service, uses it for several weeks, and then claims their credit card was compromised.