RESEARCHERS claim to have discovered an urgent need to protect sellers from chargeback fraud.
More online sellers are becoming victims of mass fraudulent buying, says a study from King’s Business School.
Professor Stuart Barnes and his co-authors have created a plan that aims to reduce losses online retailers suffer from this type of fraud.
The fraud occurs when buyers claim a refund for purchased items without returning them, typically on the basis of excuses such as ‘items not delivered’.
The researchers recommend an increase in lobbying and putting pressure on financial institutions to reduce lengthy chargeback periods to try to resolve this issue. The team are also developing a model that identifies a set of measures to enhance sellers’ trust and reduce their perceived risk.