Blockchain could help with chargeback fraud during Covid-19

Since its beginning in March of this year, Covid-19 pandemic forced all non essential business to close their doors. This accompanied with mandatory social distancing measures meant people are now- more than ever- relying on e-commerce and online shopping. According to this article from Forbes U.S. online merchants saw ” year-over-year (YoY) revenue growth is up 68% as of mid-April, surpassing an earlier peak of 49% in early January.” and there has been “an impressive 146% growth in all online retail orders.”

However, more online shopping for necessities, lack of signature on delivery and for some lack of funds due to being furlough led to an increase in e-commerce and credit card charge back fraud. states that “Conservative estimates put online sales at $630 billion this year. At the same time, a new report shows that fraudsters will take more than $12 billion off the table.”

Considering the exponential growth of online shopping, delays in shipping due to logistics disruptions and Covid-19 safeguards preventing utilization of signature-on-delivery merchants and customers alike are wondering is there a way to really solve the problem of friendly fraud, chargeback’s and
misdelivered/missing packages.

According to Mr. Alastair Johnson a Forbes Contributor for Crypto & Blockchain blockchain has the ability to not only solve the problem but also might be more cost efficient than other solutions that are currently on the market as “…merchants are no faced with having to implement a costly, multi-layered fraud strategy that uses a combination of consortium intelligence, profiling, machine learning and rules just to be able to block fraud…”

Verification lies at the heart of both the issue and the solution. Without an efficient way of verifying the purchase and that the delivery has been accepted by the right person with the right item delivered, there is no way to filter between real and fraudulent claims. 

Via emerging technology such as blockchain, immutable proof of provenance, and delivery ID verification can be gleaned. Combined with biometric verification from the purchaser it creates a powerful confirmation system. 

Then Digital ID verification can be used without the need for even opening the door, forming part of the whole experience of access, payment, customer service through to contactless delivery and provenance, maybe even verified ID product reviews too.

Considering the warnings from world health experts of possible second peak of Covid-19 and no clear timeline for potential vaccine, it’s pretty obvious that contactless delivery and online shopping will be favored by many for the foreseeable future. Turning to up-and-coming technological solutions might just be a thing we all need to minimize the impact Covid-19 has not just on the economy but also on our day to day lives.

Original article written by Alastair Johnson and published by Forbes under title Contactless Deliveries With Doorstep Verification .
Mr. Johnson is a CEO and owner of Nuggets – application that enables you to “Take back control of your data” .