While retailers are braced to deal with criminal types of fraud, a different response is needed to combat friendly fraud: chargebacks that arise out of legitimate transactions. These costs are a growing concern for the retail industry: 34% of retailers have experienced friendly fraud, which contributed to the $31 billion lost due to chargebacks in 2017, according to a study by Juniper Research. The two most common causes of friendly fraud are, when a shopper doesn’t recognize a charge on their bank statement; or, when they regret a purchase and issue a chargeback rather than asking for a refund. Communication is the key to fighting back against these scenarios without alienating customers, according to Srii Srinivasan, CEO of Chargeback Gurus. “Every type of retailer, whether small, medium or large, needs to set realistic expectations about their entire business model, from their product features and benefits to their refund and return policy to whether they’re subscription-based or not,” said Srinivasan. “There are many things that need to be listed on the web site, in the email and anywhere there’s a touch point with the customer.” Order confirmations are the first line of defense against chargebacks. They should be designed to be…