A recent report from Incognia reveals that 48% of fraud incidents on food delivery apps involve refund fraud, with users falsely claiming issues to obtain refunds. This practice presents challenges for companies such as Grubhub and Favor, given the difficulties in verifying claims. Some consumers exploit systems by creating multiple accounts with different email addresses to repeatedly secure refunds, despite restrictions imposed after several requests. The article highlights a broader issue of retail fraud, which has cost retailers $103 billion in 2024 alone.
"About 48% of consumer fraud on delivery apps involved 'refund fraud,' according to a report released Wednesday by Incognia, a fraud-prevention company."
"How do you verify these things? It's very difficult," said André Ferraz, the CEO and cofounder of Incognia, highlighting the challenges in addressing refund fraud.
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