What is first-party fraud?
First-party fraud happens when the customer who owns the account is the one committing the abuse—false chargebacks, lying about non-receipt, or farming incentives—rather than an external attacker.
What catches first-party fraud
The device and password belong to the real customer, so the signal is in history: prior chargebacks, promo clusters, dispute velocity, and lists of customers already confirmed abusive. Naiza rules act on all of them.
How Naiza applies it
Send payment, dispute, and payout events with a stable customer id. Use rules and lists. Chargeback-fraud and promo-abuse glossary pages cover the usual subtypes. REVIEW before BLOCK on a first dispute.
AML overlap
First-party abuse is not automatically money laundering. If the same customer starts moving third-party funds, that is a different typology—screen counterparties and watch velocity of payouts.
Frequently asked questions
Answers about screening, risk signals, and Naiza integration.
What is friendly fraud?
A first-party chargeback where the cardholder denies a purchase they made or authorized. Treat it as a dispute pattern, not as ATO, unless device context says otherwise.
How is first-party fraud different from ATO?
ATO uses stolen credentials on a new device. First-party fraud uses the real customer. Detection leans on history and lists, not only new-device rules.
Should we auto-block after one chargeback?
Usually no. One dispute can be legitimate. Clusters, repeat BINs, and listed customers are stronger BLOCK conditions.