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What is friendly fraud?

On Behalf of | Dec 20, 2022 | Criminal Law |

Getting accused of credit card fraud can feel like an enormous shock, especially to residents who have not had a brush with the law before.

In such instances, it is possible that the individual in question faces accusations of friendly fraud. But what exactly is this, and what rights do the accused have?

Defining legitimate disputes

Nerd Wallet discusses friendly fraud and what it is. First, know how to dispute your credit card charges properly. A person should always abide by the Fair Credit Billing Act when asking for refunds from sellers online, as certain reasons for requesting a refund are not legally valid.

It is always possible to dispute purchases if someone steals an individual’s credit card and uses it to buy things. It is also possible to legally dispute purchases in the event that a merchant accidentally charges a person twice, or charges them for an item that they did not buy. Additionally, if an item shows up damaged, this is also legal grounds for a dispute.

Illegal illegitimate disputes

Companies will eat the cost of legitimate chargebacks. On the other hand, they consider illegitimate chargebacks along the same lines as stealing. Examples include claiming a legitimate purchase as an illegitimate one or requesting chargebacks before contacting a seller.

Many people do not think twice before asking their credit card company to reverse a charge. In fact, most credit card users do this several times over the lifespan of their card. Unfortunately, doing so in the wrong circumstances can lead to a lot more legal trouble than many people would ever expect.