First-party fraud, where trusted customers dispute legitimate charges, is a silent killer of ecommerce profits. This episode with Shanthi Shanmugam of Casap reveals why traditional fraud tools fail and how a proactive approach, leveraging real-time detection and smart dispute resolution, can cut losses by over 50% and even boost customer satisfaction. Ecommerce operators must understand this nuanced threat to protect revenue and customer relationships.
Key takeaways
Recognize that 'friendly fraud' is a distinct and growing threat, requiring specialized solutions beyond traditional fraud prevention tools.
Implement real-time detection mechanisms to differentiate between legitimate customer disputes and intentional first-party fraud attempts.
Transform your dispute resolution process from a cost center into a retention lever by offering instant, fair resolutions for "truth-tellers" and efficiently flagging fraudulent claims.
Explore solutions that utilize consortium data and portable risk scores to gain a holistic view of customer behavior and prevent fraud across the ecosystem.
Proactively address first-party fraud to improve Net Promoter Score (NPS) and strengthen customer loyalty, rather than viewing disputes solely as a punitive process.
Commerce Ventures Partner Vivek Krishnamurthy sits down with Shanthi Shanmugam, Co-Founder and CEO of Casap, to unpack one of the most misunderstood problems in financial services: first-party fraud. They dig into what happens when fully KYC’d, “known” customers start using their bank like a universal refund center—filing disputes on flights, Airbnbs, subscriptions, and even dry burgers—and why traditional fraud tools, built for account takeover and identity risk, completely miss this growing loss category.
Shanthi shares how her time at Robinhood and her co-founder’s experience at Chime exposed the long tail of messy disputes: 90-day investigations, clawbacks that surprise customers, and support teams burned out enough to take the problem to couples therapy. That experience led to Casap, which helps institutions instantly resolve disputes for “truth-tellers,” identify first-party fraud in real time, and turn a painful operational function into a retention lever—cutting fraud losses by over 50% while improving NPS. They also look ahead to consortium data, risk scores that travel across the ecosystem, and what happens to liability in an “agentic payments” future where AI helps consumers spend.
Frequently asked about this episode
What does this episode say about customer experience?
Recognize that 'friendly fraud' is a distinct and growing threat, requiring specialized solutions beyond traditional fraud prevention tools.
What does this episode say about fintech innovation?
Implement real-time detection mechanisms to differentiate between legitimate customer disputes and intentional first-party fraud attempts.
What does this episode say about fraud prevention?
Transform your dispute resolution process from a cost center into a retention lever by offering instant, fair resolutions for "truth-tellers" and efficiently flagging fraudulent claims.
What does this episode say about risk management?
Explore solutions that utilize consortium data and portable risk scores to gain a holistic view of customer behavior and prevent fraud across the ecosystem.
What does this episode say about customer experience?
Proactively address first-party fraud to improve Net Promoter Score (NPS) and strengthen customer loyalty, rather than viewing disputes solely as a punitive process.
