Chargeback Disputes Rise to 158 Million in 2025 as 'Friendly Fraud' Surges
In 2025, American consumers filed a record 158 million chargeback disputes, marking a 29% increase since 2021. According to Juniper Research and Bloomberg reports, this surge is partly due to an uptick in 'friendly fraud,' where shoppers dispute legitimate transactions for personal gain or misunderstanding of charges. The Consumer Federation of America (CFA) reported that online scams cost Americans $148 billion in 2025 — a nearly 26% rise from the previous year. Social media platforms like Facebook and Instagram were identified as common sources of these scams, exacerbating consumer confusion around legitimate charges. Businesses are bearing significant financial losses due to chargebacks, which reverse transactions at their expense. While some disputes stem from genuine fraud or billing errors, many involve subjective claims such as unmet product expectations — a tactic increasingly used by younger consumers.
Topics: chargebacks credit card disputes friendly fraud online scams