“Preventing chargeback fraud is the critical ‘last mile’ of stopping payment fraud entirely,” said Marc Olesen, president and CEO of Sift. “With the addition of Chargeback’s team, technology and partners, our customers gain a true hub for fighting all types of fraud and abuse while creating a more seamless experience. We’re excited to continue working together as we help our customers implement their digital trust and safety strategies.”
The acquisition comes at a time that is rife with payment fraud, as eCommerce escalates and people rely on digital processes for bill payment and shopping. The so-called fraud economy — the connected ecosystem of cyber thieves — is experiencing exponential growth as more transactions are conducted digitally.
Chargeback’s tools and solutions will integrate directly with the Sift platform to give merchants end-to-end risk assessment along the entire customer journey. As a combined entity, both firms can work simultaneously to prevent “true” fraud — when stolen credentials are used to make payments — as well as friendly fraud, which is when shoppers make fraudulent chargeback claims to payment providers.
“As a longtime Sift partner, we’ve seen how effective full fraud coverage has been for joint customers using Chargeback’s integration with Sift,” said John Munro, CEO of Chargeback. “Now, as one company, we have an incredible opportunity to provide a single solution to merchants so they grow with less risk.”
A recent PYMNTS study done in collaboration with Sift showed that over 95 percent of modern shoppers are loyal to at least one merchant. However, they harbor deep worries over how their personal information is handled. Data analysis and communication are among the central tenets to preventing false chargeback claims, along with having the right tools to filter friendly fraud from cyberthieves and create meaningful customer insights.