What is another word for “Friendly Fraud”?

I was reading Digital Transactions article on that dreadful phrase “Friendly fraud”.  Surely our industry ought to come up with a better description for this.   Maybe first-party fraud, first-party misuse (Visa/Mastercard wording), cardholder dispute fraud, chargeback fraud, consumer dispute abuse or refund fraud (when a refund—not a formal chargeback—is exploited).  I don’t know.  It’s just fraud. 

LexisNexis Risk Solutions notes that “first-party fraud… accounted for 36% of all fraud globally in 2024, up from 15% the previous year.” That meteoric jump means the adversary is now the actual customer.

But why the surge?  Digital Transactions says:

Inflation and the cost-of-living squeeze nudge honest consumers to rationalize chargeback abuse as a harmless loan.

Years of heavy investment in stopping account-takeovers pushed bad actors—and opportunistic shoppers—toward softer targets: legitimate buyer disputes.

One-click pay, BNPL, and instant refunds remove the “pause” that once discouraged abuse. Convenience without consequence is fertile ground.

So, what now?

Treat chargebacks as potential fraud, not mere service noise. Layer behavioral analytics that flag mismatch between lifetime value and claim patterns.

Close data loops among merchants, acquirers, and issuers. Shared digital-identity signals reveal repeat abusers.

Rethink policy. Generous refund windows without proof of return invite abuse; dynamic rules tied to risk scores keep CX intact while hardening controls.

Friendly fraud thrives in gray zones. Brighten the lines, share the signals, and remind customers—and regulators—that somebody always pays. Preserving trust in digital commerce demands it.