What is Cybershoplifting?
In 2012, the merchant risk council (MRC) partnered with CyberSource to survey its members on the top fraud attacks by frequency and revenue loss. Friendly fraud / Cybershoplifting ranked number three or basically 20 to 25% of the merchant's orders. SecureBuy's biometric signature capture is the first and only technology in the industry designed to fight friendly fraud. Friendly fraud or cybershoplifting is the result of a consumer deciding they can't afford the purchase they made. They get their CC statement and may have recently lost their job, or they say they never received the merchandise. The fraudster simply calls their bank and say's "it wasn't me".
The attributes of a friendly fraud transaction are identical to a clean transaction; there is no way to distinguish from a technology standpoint. Merchants need to manage it more from a legal perspective and there is nothing more coveted in the legal environment than the consumer's signature. The signature, legible or not shows intent and provides indisputable proof of purchase.