Man sits on a sofa in his living room and uses a credit card to pay online.
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When a product you ordered online arrives and it’s not up to par, you might contact the merchant to address the problem.
However, what happens if you skip that step and just dispute the credit card transaction?
More consumers are doing just that — some in bad faith to get their money back from the card issuer, even if there’s no problem with the purchase. It’s just one example of so-called “friendly” or “first-party” fraud that’s catching the attention of security and credit card companies.
Friendly fraud, when a customer disputes a legitimate charge they made on their credit card, debit card, or another payment method, is responsible for $100 billion of loss for businesses each year, according to identity verification platform Socure.
Additionally, 35% of Americans have committed first-party fraud, and 40% know someone who has, according to the Socure October survey of 1,000 adults.
Here’s part of the problem: Disputing charges has become easier for consumers in recent years, experts say, largely thanks to efforts to enhance mobile banking service in response to canceled travel and other pandemic repercussions.
“There are legitimate disputes, and the chargeback process was built to recognize and provide some sort of relief for those legitimate disputes,” said Rodrigo Figueroa, chief operating officer of Chargeback Gurus, a company that helps businesses recover revenue.
“Now we see this massive level of abuse,” he said.
Friendly fraud is a broad term
Credit card experts say identifying friendly fraud can be difficult.
“There are a lot of stats around the rise of it, but it seems like it’s almost becoming this catch-all for anything we just don’t understand,” said Robert Painter, vice president of partnerships at fraud protection platform Kount, an Equifax company. “The word fraud is sometimes even used a little loosely.”
Sometimes, there isn’t an intent to defraud, experts admit.
For example, a consumer who doesn’t recognize the merchant name used to identify a purchase on their credit card bill might dispute the charge as fraudulent. Under the Fair Credit Billing Act, this is a legitimate dispute, said Chi Chi Wu, a senior attorney at the National Consumer Law Center.
“The merchant places a charge on a credit card account and doesn’t use the commonly known name and the consumer disputes that. That’s a legitimate dispute under the law,” said Wu. “They have a right to clarification.”
Still, this scenario can be labeled as friendly fraud.
According to the Socure report, 29% of those who said they engaged in first-party fraud said it was an accident. Others said they were experiencing economic hardship (34%) or they knew someone else who had gotten away with this maneuver and gave it a try (19%).
Merchants take the biggest toll
Determining the intent of the consumer can be the toughest issue to solve for fraud experts, said Socure CEO and founder Johnny Ayers.
The company launched a consortium of banks and fintech companies in 2023 to address this, identifying data that doesn’t show up in typical credit reports in an attempt to recognize bad actors.
“We look at the number of accounts, number of disputes, number of overturned disputes, number of closed accounts. You start to stack all of these and you start to see intent,” Ayers said. “You start to see the behavior of this individual has a very large standard deviation from a normal person.”
Whether legitimate or not, experts say merchants can feel the pain from a high volume of chargebacks, when a credit card provider demands a merchant to make good on a transaction disputed by the consumer as fraudulent.
Excessive chargebacks could also affect a merchant’s ability to process cards or a credit card company could levy fines or fees against the merchant, according to Domenic Cirone, vice president of acquirer solutions at Equifax, which acquired Kount in 2021.
The Merchant Risk Council, which consists of 600 e-commerce companies, reported in April that 94% of its members have experienced first-party fraud in the past year.
Looking at Socure’s research, $89 billion of the $100 billion attributed to this type of fraud is lost by merchants. The remainder comes from credit card fraud loss ($18 billion) and the dispute resolution from the top 15 U.S. banks. ($3 billion).
‘Most folks are honest’
Before consumers make a legitimate dispute, credit card experts and advocates recommend attempting to resolve the issue with the merchant first.
Part of why filing a dispute is so easy is because a credit card issuer will often choose to accept a dispute to preserve its reputation, according to Wu.
“One thing credit card issuers really [have to] think about before they start fighting with merchants all the time is, ‘Is this going to affect the ability to retain good customers,'” she said. “I definitely hear from consumers [saying] ‘X issuer is good on disputes. They stand up for me.”
Meanwhile, fraud professionals point to social media for the jump in friendly fraud.
A TikTok search of “disputing credit card charge” results in hundreds of videos of finance influencers sharing tips for disputing charges, and even people admitting to disputing legitimate charges to get their money back.
“They just teach you how to go steal money,” Ayers said. “All they’re doing is giving how-to guides of how to work around the rules, basically to systematically steal money from these organizations in a way that made it look like it was some type of duress or distress.”
But a lot of disputes can be attributed to simple misunderstandings between the consumer, merchant and card issuer, Cirone said.
“Every time a transaction is disputed as fraud, it’s a line item that goes through the Visa, MasterCard, Amex, Discover system. That overall statistic that I’m talking about is not driven by social media,” Cirone said. “Most folks are honest. Consumers, cardholders are honest folks and I think there’s a break in communication.”
The 2026 residential real estate market presents a nuanced landscape for homebuyers, current homeowners, and property investors. With benchmark mortgage rates adjusting alongside Treasury yield movements, real estate strategies require careful evaluation of borrowing costs, local market supply dynamics, and long-term home equity management.
Adapting Homebuying Strategies to Mortgage Dynamics
Prospective homebuyers are adapting to fixed 30-year mortgage rates hovering between 6.0% and 6.8%. While borrowing costs are elevated compared to historical lows seen in prior decades, moderating home price growth across several regional markets is creating selective opportunities for buyers with strong credit profiles.
Homebuyers are increasingly utilizing strategic mortgage options:
– Builder Rate Buydowns: Purchasing new construction homes where developers offer temporary or permanent interest rate buydowns to lower initial monthly payments.
– Adjustable-Rate Mortgages (ARMs): Selecting 5/1 or 7/1 hybrid ARMs with strict rate caps for short-to-medium-term housing plans.
– Points and Financing Structure: Evaluating upfront discount point purchases to secure lower fixed interest rates over the loan term.
Home Equity Utilization and Renovation Financing
For existing homeowners holding low-rate legacy mortgages, moving to a new property often entails relinquishing favorable debt terms. Consequently, many homeowners are choosing to renovate and expand existing properties rather than sell.
Home Equity Lines of Credit (HELOCs) and home equity loans allow homeowners to access accumulated property equity for capital improvements without disturbing their primary mortgage rate. Utilizing home equity for value-adding property renovations can enhance living space while increasing long-term property values.
Strategic Real Estate Investment Guidelines
For residential property investors, achieving positive cash flow requires strict underwriting standards:
– Stress-Test Operating Expenses: Factor in rising property insurance premiums, local property taxes, and ongoing maintenance reserves.
– Focus on High-Growth Rental Markets: Target regions experiencing steady job growth and sustained tenant demand.
– Maintain Cash Buffers: Ensure property portfolios maintain dedicated emergency reserves to navigate unexpected vacancy periods or major repairs.
Actionable Homeownership Steps
1. Evaluate Complete Monthly Housing Costs: Assess property taxes, homeowners insurance, and HOA fees alongside principal and interest.
2. Leverage Renovation Equity Carefully: Utilize equity loans strategically for renovations that generate long-term property value.
3. Prioritize Credit Score Optimization: Secure top-tier credit scores prior to mortgage pre-approval to qualify for competitive lender pricing tiers.
The United States Department of State has officially implemented a revised visa policy introducing a mandatory posting requirement for caution payments of up to $20,000 on select foreign travel applications. Under the updated regulatory framework, consular officials are authorized to require temporary nonimmigrant visa applicants from targeted foreign countries to post a refundable financial bond of $20,000 as a condition for visa issuance. The policy mechanism is designed to address diplomatic concerns regarding high overstay rates among temporary visitor, business, and educational visa categories.
The caution bond pilot program applies selectively to foreign nationals from designated countries whose diplomatic entities record historical visa overstay rates exceeding established federal thresholds. Under administrative guidelines published by the State Department, the full financial deposit is posted directly to a dedicated federal escrow account prior to final visa issuance. The entire caution payment is automatically refunded to the applicant upon verified proof of timely departure from the United States in strict compliance with the authorized duration of stay. Conversely, failure to depart within the legal timeframe results in full forfeiture of the posted financial bond to the United States government.
Diplomatic representatives and travel policy experts have expressed varying perspectives regarding the operational implementation of the caution bond system. Administration officials emphasize that the measure serves as an effective, market-based incentive to enforce international travel compliance and preserve domestic immigration security standards. However, international trade organizations and foreign diplomatic missions have raised concerns regarding the financial burden imposed on legitimate business travelers, foreign students, and commercial partners from developing nations.
The United States finalized the rule to make the temporary visa bond program permanent, taking effect on August 3, 2026. The updated permanent regulation replaces the prior 12-month pilot, eliminates the lowest $5,000 tier, and raises the maximum required bond amount to $20,000 for specific B-1/B-2 business and tourist visa applicants.
Here is the list of the 50 countries on the list as o August 3, 2026
Retirement planning strategies are evolving in 2026 to address increased life expectancies, shifting dynamic market conditions, and the transition away from traditional defined-benefit pensions. Individual investors and financial advisors are abandoning rigid retirement models in favor of flexible, multi-asset strategies designed to mitigate longevity risk and preserve purchasing power over multi-decade retirement horizons.
Mitigating Longevity Risk with Dynamic Asset Allocation
As average life expectancies extend past eighty-five years, one of the primary financial risks facing retirees is outliving their accumulated wealth. Traditional fixed income allocations—such as the standard 60/40 equity-to-bond portfolio—are being reevaluated to ensure portfolios generate sufficient capital growth alongside reliable income.
Financial planners recommend maintaining a meaningful equity allocation throughout retirement to offset long-term inflation erosion. High-dividend equity funds, global real estate investment trusts (REITs), and inflation-indexed Treasuries are combined to create diversified portfolios that deliver both growth and income stability.
The Transition to Dynamic Withdrawal Strategies
The classic “4% safe withdrawal rule” is increasingly replaced by dynamic withdrawal strategies that adapt annually based on market performance. Under a dynamic withdrawal framework, retirees adjust their annual distribution rates within pre-set caps and floors:
– Market Upside: During strong market returns, retirees can increase discretionary spending or fund family legacy gifts.
– Market Downturns: During market pullbacks, spending distributions are temporarily reduced to prevent sequence-of-returns risk and preserve core investment principal.
Guaranteed Lifetime Income Options and Deferred Annuities
To establish a guaranteed baseline for essential living expenses, individuals are incorporating modern fixed-indexed and deferred longevity annuities into their broader retirement architectures. Modern annuity structures offer competitive return caps, transparent fee schedules, and inflation-adjustment options.
By funding essential expenses—such as housing, healthcare, and insurance—with guaranteed income streams from Social Security, pensions, and annuities, retirees can manage discretionary investment portfolios with greater flexibility and lower emotional stress during market volatility.
Actionable Steps for Future Retirees
1. Calculate Baseline Retirement Expenses: Determine fixed living costs and map guaranteed income sources to cover essential expenditures.
2. Adopt Flexible Withdrawal Rules: Implement dynamic spending rules to protect investment principal against market downturns.
3. Incorporate Inflation-Protected Assets: Maintain exposure to dividend-growing equities and inflation-indexed bonds to safeguard long-term purchasing power.
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