The dust is still settling following former President Donald Trump’s sweeping win over Vice President Kamala Harris last week. The President-elect is slowly revealing who his is selecting for leadership roles which will help guide his policy in his forthcoming administration. While the Biden Administration was known for pursuing allegations of consumer abuse and consumer protections, the CEO of Chargebacks911 predicts the ongoing battle against fraudsters will improve during the Trump administration.
Chargebacks911 offers dispute management software that aims to keep customers happy while improving reputational risk.
CEO Monica Eaton says the recent election was contentious but states when hasn’t this been true about politics in the United States?
“Luckily for the country, there is no doubt about the results, so we can expect a smooth transition to the inauguration in January,” says Eaton. “What does the election mean for U.S. consumers, and in particular the epidemic of fraud that is causing prices to rise and consumer confidence to fall? Any incoming administration needs to take seriously the $243 billion lost to chargebacks each year, 75% of which Visa reports is fraudulent. This is significantly more than the $132 billion lost to shoplifting each year. If there is an economic bounce-back coming, its impact will be blunted if a significant part of it is drained away by fraud.”
Eaton notes that any Republican government will lead to decreased regulation and the Trump administration should be especially eager to slash the red tape to boost efficiency of the government process.
“You might expect that this will lead to an increase in fraud as more financial services companies take a lax approach to fraud in order to save money, but the opposite is more likely to be true: companies like ours will be freed to pursue fraud more aggressively, using the full range of tools available to us. For example, being able to access more data will mean that our AI systems can make smarter decisions, and a similar light touch around AI regulation will mean that those systems themselves will get smarter quicker.”
Eaton says, “Don’t expect that less regulation will mean that retail and eCommerce become the Wild West. It’s more likely that the opposite will happen—the gloves will be off, and our economy can finally start to get serious about first-party fraud.”
