Prevent Chargeback Fraud with Shufti

45%

Fraudulent payment chargebacks

$15 Billion

in chargeback losses

$120

Chargeback value per dispute

Why is the industry struggling with stopping Chargeback Fraud?

Stores are skipping proper scrutiny

Are people losing their sense of accountability, or is the system simply too weak to deter friendly chargeback fraud? Probably the latter because, in the name of reducing friction, many e-commerce IDV systems skip even basic scrutiny, letting the most questionable users slip through unchecked.

Neglecting compliance gaps

Billion dollars later, its clear fraudsters are not the only one to blame here. When merchants refuse to acknowledge the compliance gaps in online payment fraud, making it easier for bad actors with malicious intent to exploit weak points, revenue losses automatically follow.

Huge losses from subscription fraud

With an average value of $120, chargebacks from one-off buyers or large purchases hit especially hard. The bigger the order and the less a company knows the buyer, the more painful the loss. But it does not stop there, losses for subscription-related fraud can cost even more.

Detect. Prevent. Respond to Chargeback Fraud with Shufti

Detect chargeback fraud before it hits your bottom line. Shufti identifies suspicious patterns, verifies genuine transactions, and blocks fraudulent disputes in real time. Stay profitable, protected, and always one step ahead of chargeback abuse.

Detect Chargeback Fraud before it hits bottom line

Identifies high-risk behavior early to reduce exposure.
Flags questionable transactions before they escalate.
Helps you separate legitimate users from potential abusers.

Prevent Revenue loss without compromising experience

Stops fraudulent purchases before they’re completed.
Protects high-value orders from post-purchase abuse.
Maintains a seamless journey for trusted customers.

Respond With confidence when any disputes arise

Equips you to fight false claims with clarity.
Reduces time, cost, and stress of chargeback handling.
Helps recover revenue while strengthening compliance posture.

Stopping Payment Chargeback Fraud in its tracks Know when your vendor can help

Chargebacks, fake payments, and wire fraud aren’t just isolated threats, they’re symptoms of deeper transactional fraud. A trusted vendor can help streamline your payment fraud prevention strategy by detecting risks early in the chargeback process, whether it's a credit card chargeback or suspicious wire activity.

Purchase is made by user

A customer places an order using their own credit card. Makes a first time or high value transaction

Shufti

Carries a 2 step IDV/KYC to assess person's liveness, address matching or eIDV check.

Product delivers to user

The merchant ships the product and delivers the service. Everything seems fine.

Shufti

Conducts device intelligence and behavioral biometrics to confirm the person's purchase.

Chargeback filed by user

The customer falsely claims the transaction was unauthorized or the item was never received.

Shufti

Uses stored IDV/KYC record to defend against dispute (with the bank).

Revenue loss prevented

Customer keeps the product, but the payment is reversed. Without Shufti, the merchant lose product and money.

Shufti

Prevents future fraud by flagging this user and similar user strengthening long-term capacity.

User Verification=High Friction

That's the myth they are selling

If your vendor says security leads to drop-offs, it’s because their tech can’t keep up. Shufti secures every transaction by combining real-time identity verification with intelligent behavior tracking thus enabling seamless customer journeys while strengthening payment fraud risk management and chargeback fraud prevention.

Identity Verification

Email Verification
Phone Verification
Device Intelligence
Behavioral Biometrics

Identity Verification
EIDV checks
Liveness Detection
AML Screening
Deepfake Detection
Customer Risk Profile Screening
Document Verification
Fraud Network Detection
Duplicate Screening
Geolocation Matching
Address Verification

Behavioral Monitoring

Behavioral Monitoring
Liveness Check
Behavioral Intelligence
Device Intelligence

Transaction Trust Platform Monitoring
Account Takeover Screening
Transaction Monitoring
Payment Method Monitoring

Chargeback Fraud Prevention tailored to each Industry

Chargeback fraud hits every industry differently. Shufti adapts to them all. With tailored risk models and real-time intelligence, we stop disputes before they start.

Chargeback fraud prevention for eCommerce

In eCommerce, every dispute costs more than money,spit costs trust. Shufti stops chargeback fraud before checkout turns into a chargeback, keeping sales genuine and customers confident.

Shufti for iGaming

Shufti keeps the game fair by blocking fake bets and bonus abusers before they play.

Shufti for Mobility

From drivers to riders, Shufti verifies every user to stop chargeback scams on the move.

Shufti for Socials

Shufti filters out fake accounts and fraudulent spend, keeping your platform authentic and ad-safe.

Our Clients save millions with us. Learn why so many of world class clients love Shufti

Explore Shufti’s Global Trust Platform

The 1% that matters in fraud prevention

Most vendors boast “99% fraud prevention”, but the real danger hides in the 1% they overlook. In this whitepaper, follow the story of Jack, a seasoned fraudster who thrives in those blind spots. Discover why it’s time for companies to move beyond surface-level checks and adopt solutions that truly understand the nuance in every case.

Download the whitepaper

Frequently Asked Questions

What is chargeback fraud?

Chargeback fraud occurs when a customer disputes a legitimate transaction, claiming it was unauthorized in order to get a refund, while still keeping the purchased goods or services. This leads to financial losses and damages merchant credibility.

Why is chargeback fraud a growing issue for online businesses?

As digital payments and e-commerce continue to rise, fraudsters exploit weak verification processes to file false disputes. This growing issue causes financial losses, operational strain, and reputational damage to merchants, especially in sectors like retail, fintech, and gaming.

How does Shufti help prevent chargeback fraud?

Shufti uses AI-powered identity verification and real-time transaction legitimacy checks to prevent chargeback fraud. By verifying users and their transactions through KYC, KYB, and behavioral analytics, Shufti helps businesses confirm the authenticity of payments before they are disputed.

Can identity verification reduce friendly fraud?

Yes. By confirming the identity of each buyer through document and biometric checks, Shufti ensures that only authorized users can complete transactions, significantly reducing the chances of friendly fraud and improving transaction security.

What’s the difference between friendly fraud and chargeback fraud?

Friendly fraud occurs when legitimate customers dispute charges unintentionally or dishonestly, while chargeback fraud is a deliberate attempt to reverse valid payments for profit, often through false claims of unauthorized transactions.

How can Shufti’s KYB verification help merchants avoid chargebacks?

Shufti’s KYB verification ensures that merchants, vendors, and partners are legitimate businesses, reducing the risk of fraudulent transactions and disputes downstream. By verifying the authenticity of partners, businesses can prevent chargeback fraud before it occurs.

What data and behavioral insights does Shufti use to detect chargeback fraud?

Shufti analyzes transaction history, device data, and user behavior patterns to spot anomalies linked to chargeback fraud. Using AI-driven analytics, it cross-checks identity details, device consistency, and dispute frequency to flag suspicious activity before false claims occur.

How can Shufti help merchants with cross-border chargeback fraud?

Cross-border chargebacks are often challenging due to discrepancies in verification standards. Shufti’s global KYC and AML screening ensure that both domestic and international transactions are thoroughly vetted, helping merchants avoid fraudulent claims across borders and ensure compliance with international regulations.

How does Shufti verify the legitimacy of users during chargeback disputes?

In the event of a chargeback dispute, Shufti's real-time verification system provides detailed identity checks and transaction validation data. By cross-referencing user behavior, device data, and identity documents, we help merchants confirm whether a transaction was legitimately disputed or fraudulent.