The Impending Transaction Dispute AvalancheRyan Battles of EY Details Increasing Friendly Fraud Trends
E-commerce has skyrocketed in 2020, but so have transaction disputes. Ryan Battles of EY explains how merchants can reduce "friendly" fraud.
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Battles says that the majority of these disputes can be classified as first-person, or "friendly" fraud.
"Roughly 65% of the disputed transactions can be classified as friendly fraud," he says. "A lot of them are purely, 'We just don't recognize the transaction. I don't know what this is.' Some of it was through the disruption that we saw earlier in the pandemic because of travel. And then, as the supply chains were adjusting to the pandemic, just the general disruption caused a lot of these as well."
In a video interview with Information Security Media Group, Battles discusses:
- Forces driving the spike in transaction disputes;
- The cost to retailers for dealing with transaction disputes;
- How better merchant/consumer communication channels can alleviate the problem.
Battles is a principal in the Financial Services Office of Ernst & Young LLP (EY), where he currently leads the banking and capital markets technology solution delivery group, specializing in mortgage, consumer and commercial originations technology and operations. Over the course of his career, he has led multiple large-scale transformational initiatives at some of the largest financial institutions in the country. He has extensive experience managing large-scale modernization programs across the banking and capital markets domains.