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Women Commit More E-Commerce Fraud Than Men

Posted on 9.18.2016

Men and women may be equal when it comes to what they spend online, but it appears that women are committing more e-commerce fraud (specifically chargeback fraud) than men. 

According to Chargebacks911, women are responsible for 76 percent of all chargebacks. 

“It’s an eye-popping trend,” said Monica Eaton-Cardone, COO and co-founder of Chargebacks911. “Clearly, men and women have different purchasing patterns, and online companies would be wise to accommodate these behavioral differences. Too much money is at stake to ignore the problem.”

Chargeback fraud typically involves a cardholder reporting a fraudulent (or incorrect) charge to their bank in order to obtain a refund, even though the consumer purchased and received the right product. 

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The burden-of-proof is on the merchant in these instances to defend the legitimacy of the transaction, which creates an environment where consumers engage in cyber shoplifting. The impact of chargeback fraud is immense, costing online merchants more than $40 billion annually in product-loss, fees and other expenses. And even worse is the fact that fraud of this nature is growing at a rate of 41 percent per year.

“Business experts wonder why women commit more chargeback fraud than men,” said Eaton-Cardone. “One theory is that women are more selective. Jumio’s Market Consumer Insights Study reported that 68 percent of women had abandoned an apparel or clothing purchase on a mobile device, but just 51 percent of men had abandoned a purchase. 

"This might mean that men are more likely to accept a ‘good enough’ solution, so they can justify abandoning the shopping process and proceed to another activity, whereas women have more specific expectations about what they want, and a greater willingness to seek the optimal outcome. So it’s not that women are less honest than men, but that women will utilize every available resource to resolve a shopping dispute."

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