Field guide

Chargeback Fraud (Friendly Fraud)

How it works

Players deposit funds, gamble, lose, then claim the transactions were unauthorized or fraudulent to reverse charges through their bank or credit card company—keeping any winnings and recovering losses. A player makes deposits via credit card, plays, and then disputes the charge with their bank claiming stolen card, unauthorized use, or merchant error. Even if they lost, the chargeback recovers their deposit. If they won and withdrew, they keep winnings plus get the deposit back.

On the record

Chargeback fraud is endemic in online gambling. Operators lose millions annually to friendly fraud, particularly in jurisdictions with lax dispute investigation.

Published as a detection reference for surveillance, compliance and gaming-operations professionals. Thresholds and tuning are set by the property. Nothing here is instruction — the method is described so it can be recognised.