Fraud prevention firms GeoComply and Accertify are launching an ‘industry-first’ chargeback generator system to solve what they deem to be a $130bn fraud problem.
The two companies will collaborate and aim to prevent chargeback disputes and friendly fraud chargebacks for gaming operators with their latest offering, aiming to prevent first party misuse, which, according to GeoComply, accounted for $130bn in losses in 2021 alone.
The chargeback solution will integrate geolocation data to detect chargeback representments, implementing GeoComply’s compliance-grade data and infuse it with Accertify’s chargeback management solution.
“Each year, online gaming operators experience significant revenue loss due to friendly fraud, a growing issue driven by the continuing growth of eCommerce,” commented Anna Sainsbury, Co-Founder and CEO of GeoComply.
“By partnering with Accertify, we can now provide operators with the evidence they need to successfully defend against chargeback disputes, and we can automate the entire process.”
The gaming sector is of particular interest to both firms, having experienced a surge in growth with estimates of up to $81bn in total wagers expected to take place by the end of 2022. This does however, come with heightened potential risks, with first party misuse at the forefront of those risks.
First party misuse is projected to cause serious problems for gaming operators who do not have adequate tools in place to prevent it. According to GeoComply, only 18% of merchants which dispute these chargebacks turn out successful for the company.
Mark Michelon, President of Accertify, added: “GeoComply’s advanced geolocation technology combined with their deep industry expertise with gaming operators makes them the perfect partner to help automate and reduce chargebacks.
“This first of a kind solution is a game changer, and our collaboration will make a positive impact for gaming operators.”
