What is the difference between true fraud and friendly fraud?

True fraud is when fraud is committed with malicious intent. For example, when a credit card is stolen and then used to make unauthorized purchases, it is considered true fraud.

Friendly fraud occurs when a customer uses their credit card to purchase a good or service, and then issues a chargeback for that transaction. This could either be deliberate or accidental. Often times, the customer may not recognize the charge on their credit card statement, thus resulting in a chargeback.