IFG_546952177-FPF Survey Findings Infographic_R4

U.S. businesses are looking at a $100 billion first-party

fraud problem.

And it all starts when their customers dispute a legitimate ACH transaction, credit card purchase, or wire transfer.

Spent on bank dispute $ 3B resolution by the top 15
U.S. banks
$ Credit card

18B fraud losses
$ 89B
Merchant losses through chargebacks, promotions, and returns abuse³

Financial fraud is alarmingly common in America today.

Here’s what our research found:*

%

of survey respondents have committed first-party fraud

We’ve long relied on assessing consumer “intent”– or the

thought behind a consumer’s transaction or purchase – to

detect first-party fraud.

But intent is fluid. It shifts as life circumstances change.

% %

of respondents who of respondents
committed first-party known to have
fraud did so due to committed
economic hardship. first-party fraud.

Who’s committing first-party fraud?

Respondents who know someone who has committed at least one first-party fraud behavior:

% %

of Millennials of Boomers

% %

The number of Gen Z consumers
The number of Gen Z consumers that have made a purchase that say they’d commit first-party fraud if they knew there would be (BNPL) without intending to pay it back

The most commonly reported fraud method respondents observed?

% %

Requesting a refund for an
Choosing not to pay off credit
“undelivered” online purchase
card bills indefinitely that was actually received

And the worst part?

%

77
Percentage of respondents who think there are some instances of first-party fraud that should not carry legal consequences

This is what merchants and the financial services industry

are up against.

We’re shedding light on the massive scale of this challenge with the industry’s most comprehensive

study of first-party fraud.

DOWNLOAD THE REPORT

Socure conducted this research using an online survey prepared by Method Research and distributed by PureSpectrum among n=1,000 adults ages 18 - 77 in the United States. Respondents were evenly split on gender with a spread of ages and geographic location represented. Data was collected from October 1 to October 3, 2023.

  1. Deninzon, D., D’Silva, V., & Sood, R. (2018b, June 16). Payment disputes in banking: A pathway to deeper customer relationships. McKinsey & Company. https://www.mckinsey.com/industries/financial-services/our-insights/payment-disputes-in-banking-a- pathway-to-deeper-customer-relationships
  2. Luttrell, C. (2018a, March). The New Fraud Landscape: What It Means for Financial Services. PaymentsJournal. https://www.pay mentsjournal.com/the-new-fraud- landscape-what-it-means-for-financial-services/
  3. Pymnts. (2023, March 28). Merchants walk fine line policing $90B of promotions abuse. PYMNTS.com. https://www.pymnts.com/ fraud-prevention/2022/merchants-walk-fine-line-policing-90b-of-promotions-abuse/ socure.com IFG_546952177