For pure-play e-commerce retailers, we are increasingly shifting beyond stolen cards and into more complex, margin-eroding behaviours: first-party fraud, returns abuse and chargeback manipulation. These attacks are harder to detect because they often come from ‘legitimate’ customers: or at least accounts that look legitimate on the surface…
First-party fraud is growing fastest
Unlike traditional fraud, first-party fraud exploits merchant policies: claims of non-delivery, “unauthorised” purchases, or deliberate disputes used as a refund shortcut.
Retailers are responding by building trust-based customer profiles that incorporate behavioural history, dispute frequency and delivery pattern risk, rather than treating every transaction in isolation.
Returns abuse as a profit threat
Returns have become one of the biggest fraud battlegrounds for e-commerce. Wardrobing, serial returning, empty-box fraud and refund manipulation are rising, particularly in fashion, electronics and high-volume categories.
Leading merchants are deploying returns fraud solutions that link return behaviour to identity, device and account history, enabling targeted friction rather than blanket restriction.
Chargeback manipulation and dispute strategy
Chargebacks remain costly, and organised abuse is increasing. Best practice is proactive dispute prevention: clearer post-purchase communication, delivery proof integration, and smarter refund pathways before escalation occurs.
Fraud prevention platforms are also becoming more integrated with payments and customer service, allowing merchants to resolve issues early and reduce downstream loss.
For pure-play e-commerce, the new fraud frontier is managing policy abuse without alienating genuine customers. Margin protection depends on recognising that fraud is no longer only external: it’s often hiding in plain sight.
Are you searching for Fraud Prevention solutions for your organisation? The Fraud Prevention Summit can help!
Photo by Iuliia Pilipeichenko on Unsplash
