Fighting Friendly Fraud

My father just wanted to renew his SiriusXM subscription. The next thing he knew, a fraudster had gained access to his phone and was attempting to send payments through his online banking. Friendly fraud, also known as first-party or chargeback fraud, is becoming an increasing challenge for financial institutions as the lines between true fraud, customer confusion, and intentional abuse continue to blur. While often viewed as a merchant issue, these disputes create significant operational burden, compliance considerations, and reputational risk for financial institutions as well. This session will explore how to identify and differentiate friendly fraud from true unauthorized activity, navigate Regulation E requirements, and improve dispute intake and investigation processes. Attendees will also learn practical strategies for reducing friendly fraud while maintaining trust and minimizing friction for legitimate accountholders.