Shoppers made 158 million chargeback disputes in 2025 as 'friendly fraud' surged 29% — and businesses pay the price

Consumer chargeback disputes hit 158 million in 2025, driven by a 29% increase in 'friendly fraud.' This trend places significant financial strain on businesses and impacts the online transaction ecosystem.
Key takeaways
- Friendly fraud cases rose significantly last year.
- Businesses absorbed substantial costs from disputes.
- AI tools are crucial for combating online fraud.
Why it matters
For AI users and businesses, this surge highlights the increasing sophistication of online fraud. It necessitates stronger AI-powered fraud detection and prevention tools to protect both consumers and merchants from financial losses.
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