Tag: customer relationship management

Fraud is already a complex challenge, but merchants face an additional hurdle: first-party fraud perpetrated by their own customers. Unlike second- or third-party fraud, first-party fraud occurs when consumers use their legitimate payment credentials to commit dishonest acts for personal gain. This creates a significant challenge for acquiring banks and payment service providers (PSPs) in assisting merchants with fraud prevention.

To effectively support merchants, acquiring banks must develop a thorough understanding of how first-party fraud operates. This article explores how acquirers and PSPs can help merchants mitigate first-party fraud and protect their profits.

What is First-Party Fraud?

First-party fraud involves a consumer intentionally defrauding a merchant for personal or financial gain. In these cases, the consumer obtains goods or services without paying for them. Customers may commit this type of fraud for various reasons, discussed below.

Often referred to as "friendly fraud" or "first-party misuse," industry leaders like the Merchant Risk Council advocate using the term “first-party misuse” to emphasize the seriousness of these actions. The rationale is simple: there’s nothing friendly about fraud. Over time, “first-party misuse” is expected to replace “friendly fraud” as the standard term.

First-party fraud (or misuse) is particularly challenging for businesses because it originates from legitimate customers, complicating detection and prevention efforts. It’s akin to realizing that “the call is coming from inside the house.”

Six Common Types of First-Party Fraud

Chargeback Fraud

Customers dispute legitimate transactions after receiving goods or services, requesting refunds or chargebacks through their financial institution. Merchants ultimately bear the financial loss.

Buyer’s Remorse

After making a legitimate purchase, a customer regrets it and, unable to return the item, requests a refund or chargeback.

Family Fraud

A household member, often a child, makes unauthorized purchases using a parent’s payment credentials. The parent disputes the charges, resulting in a chargeback.

Return Fraud

Customers exploit return policies by returning used, stolen, or counterfeit items for refunds or store credit.

Coupon/Discount Abuse

Customers manipulate promotional offers or create multiple accounts to exploit first-time customer discounts.

Unrecognized Transactions

Customers dispute charges they don’t recognize, often due to unclear billing descriptions or subscription renewals after free trial periods.

To Know More, Read Full Article @ https://ai-techpark.com/first-party-fraud-insights/

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Large Language Models (LLMs) are transforming the business landscape, particularly in sales. These advanced AI tools harness data to deliver valuable insights, revolutionizing how sales teams interact with customers, generate leads, and develop innovative sales strategies. This article explores how LLMs enhance efficiency, personalization, and strategic depth in sales operations.

"LLMs are just beginning to revolutionize the sales process," said Logan Kelly. "While they currently automate routine tasks, their future potential lies in predicting customer needs, delivering hyper-personalized strategies at scale, and providing real-time insights to help sales teams outperform the competition. The next wave of LLM advancements will redefine customer engagement and enable sales teams to achieve unparalleled success."

Enhanced Personalization at Scale

One of the greatest challenges in sales is scaling personalized outreach. LLMs address this by analyzing vast data sets to create tailored communications, such as emails and conversations, that resonate with individual customers. By examining social media activity, published content, and company news, LLMs provide insights into a prospect’s digital footprint, enhancing engagement and improving conversion rates with personalized messaging.

Streamlined Research and Data Analysis

Market research and data analysis are foundational to the sales process. LLMs streamline these tasks by analyzing and summarizing massive data sets, offering actionable insights on market trends, competitor strategies, and potential leads. This enables sales teams to focus on strategic planning and execution rather than being overwhelmed by time-consuming data analysis.

Automated Lead Qualification

LLMs excel in automating lead qualification, a task traditionally prone to error and inefficiency. By leveraging natural language understanding, LLMs evaluate leads based on online behavior, engagement levels, and pain points. This ensures sales teams can prioritize high-potential leads, optimize resources, and maximize conversion opportunities.

Large Language Models are proving to be transformative tools for sales teams, delivering groundbreaking advancements in personalization, research, lead qualification, coaching, and CRM optimization. These AI-powered tools enable sales professionals to forge deeper customer connections, streamline processes, and achieve unprecedented success.

As sales operations evolve, LLMs are becoming indispensable, offering intelligent, efficient, and personalized solutions. The sales industry is undergoing a paradigm shift, and LLMs are at the forefront, driving innovation and empowering teams to excel in the modern business landscape.

To Know More, Read Full Article @ https://ai-techpark.com/leveraging-large-language-models/

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