The key to reducing first-party fraud? Improve CX (but with vigilance)

Unlike traditional fraud, first-party fraud often involves legitimate customers, making it harder to detect and prevent. Striking the right balance between customer satisfaction and vigilance against fraud can improve revenue retention and stronger customer relationships.

First-party fraud is hard to spot and is growing faster than old-school payment fraud. Signifyd’s “The State of Fraud 2023” found that in 2022, first-party fraud was up 36% year over year, while payments fraud increased by 34%.

While updates to payment networks' dispute rules and technological advances are among the many ways the industry is tackling the rise in first-party fraud, merchants have another tool in their arsenal: the customer experience (CX). 

Access this article from Signifyd and Merchant Risk Council to learn different strategies for protecting your business from first-party fraud while keeping your customers happy.