Authentication & Security

Summer Ticketing Fraud Leading to Rising Chargeback Costs

MEDICI

Europe’s first chargeback remediation specialist launches new white paper for ticket vendors to help identify and tackle the rising costs of ticketing fraud

Dublin, Ireland, 14 September 2016Global Risk Technologies, Europe’s first chargeback remediation specialist and owner of Chargebacks911, today released a new ticketing fraud white paper addressing the rising trend of ticket-related fraud and chargebacks.

The UK saw a 55% rise in ticket fraud in 2015, losing £5.2 million to online ticket fraudsters in 2015, compared to £3.35 million in 2014.

According to the UK’s Local Government Association (LGA), over a quarter of fake tickets sold online in 2015 were for big sporting events, including England’s Rugby World Cup tournament and the English Premier League. People aged between 20–29 made up over a quarter of victims in 2015.

By the end of the decade, it's expected that around £2.70 in every £690 of online payments will be fraudulent. Airline ticketing is expected to contribute up to 6% of this figure in 2020, at $1.5 billion or £1 billion.

“Venue operators and ticketing companies are unfortunately no less prone to the problem of chargebacks than retailers from any other sector,” explains Monica Eaton-Cardone, Co-Founder, Chargebacks911 and Global Risk Technologies. “The problem today is that the chargeback process is heavily weighted in favor of the cardholder, to the extent at which it is being abused.”

Working with an online ticketing company, Chargebacks911 secured a 14% reduction in chargeback origination, increased the win rate from 15.8% to 58%, and helped bring about a 50% reduction in chargebacks from the same cardholder.

Tony Craddock, Director General of the Emerging Payments Association highlights that “half-empty venues and an alleged illegal ticketing probe at in Rio are timely reminders that ticketing fraud is current and big business. A failure to square up to it damages the reputation of online payments with consumers and hits businesses with compensation costs. As ticketing fraud grows, it becomes increasingly important not to treat it as collateral damage within a business as usual."

Although ID fraud gets more media attention, 70% of chargeback volumes are actually attributable to friendly fraud, 20% to merchant error and 10% to criminal fraud.

The Global Risk Technologies/Chargebacks911 white paper aims to help educate ticket vendors to the very real threats to their bottom line and encourage them to proactively combat fraud of all types if they want to prevent losses.

To find out more about managing the chargeback risk in ticket sales, download the full, free ticketing fraud focus paper here.

Global Risk Technologies and Chargebacks911 provide a comprehensive and highly scalable merchant-centric solution for chargeback processing, risk mitigation, fraud management and education that is unrivalled anywhere else in Europe. To find out more about combatting the chargeback threat visit www.globalrisktechnologes.com or www.chargebacks911.com.

Summer Ticketing Fraud Leading to Rising Chargeback Costs About Global Risk Technologies & Chargebacks911:

Global Risk Technologies and its US counterpart Chargebacks911 provide a comprehensive and highly scalable enterprise solution for chargeback compliance, risk mitigation, fraud management and merchant sustainability services to acquirers, card issuers and local merchants. It helps decrease the negative impacts of chargebacks, cb911transparent-light-740x191thereby increasing processing retention and revenues, and helping combat cyber-shoplifting, resulting in sustainable, secure growth.

MEDICI Team

MEDICI

MEDICI Team is a group of content writers, bloggers, journalists, researchers, and editors from the MEDICI team who collaborate to create FinTech insights.

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