E-commerce is booming. By 2025, global retail e-commerce sales are expected to exceed £5.5 trillion, with more customers shopping online than ever before. But as online sales continue to rise, so too does the threat of chargeback fraud — a costly and frustrating issue that eats into retailer profits and undermines customer trust.
At Vigilo Networks, we believe retailers shouldn’t have to choose between growth and security. That’s why we’ve developed Vigilo Chargeback Prevent, our new AI-powered solution designed to combat chargeback fraud at its root. Officially launching at Ecommerce Expo 2025 at London’s ExCeL Centre, this innovative software empowers retailers with real-time fraud insights to safeguard their revenue without disrupting the customer experience.
The Hidden Cost of Chargeback Fraud
Chargebacks were originally designed to protect consumers from fraudulent or unauthorised transactions. But in today’s fast-moving digital economy, the system is often exploited in ways that damage retailers.
According to industry reports:
- Chargeback fraud is growing at 20% per year, outpacing overall e-commerce growth.
- Retailers lose an estimated £2.35 for every £1 lost to a fraudulent chargeback, once processing fees, penalties, and operational costs are factored in.
- Around 70% of all chargebacks are now classified as “friendly fraud,” where the customer themselves initiates the dispute.
These numbers highlight the scale of the problem — and why businesses urgently need smarter solutions.
Understanding the Two Faces of Chargeback Fraud
At Vigilo, we focus on tackling both major forms of chargeback fraud:
1. Friendly Fraud
This type of fraud occurs when a customer disputes a charge despite receiving (and often using) the product. Common examples include:
- Claiming non-receipt of goods despite confirmed delivery.
- Using an item and then filing for a chargeback instead of returning it.
- Forgetting about a legitimate purchase and disputing the charge.
While not always malicious, friendly fraud is costly and widespread. Vigilo Chargeback Prevent analyses customer checkout data and compares it with historic chargeback behaviour to calculate the likelihood of a future dispute — giving retailers the power to act proactively.
2. Criminal Fraud
Criminals frequently exploit online stores using fake identities, prepaid debit cards, or stolen credentials to obtain high-value goods. For retailers, this often results in unrecoverable losses. Vigilo mitigates this by conducting real-time identity verification against Experian’s bureau-level data. If irregularities are detected, the order is flagged, and a live ID check is initiated before goods are dispatched.
How Vigilo Chargeback Prevent Works
Vigilo Chargeback Prevent combines AI-driven algorithms with bureau-grade data verification to provide a unique safeguard for retailers. Here’s how it integrates into the checkout process:
- Customer places an order using standard payment and checkout methods.
- AI analysis begins instantly, reviewing customer details, payment history, and behavioural patterns.
- Experian bureau-level checks cross-reference identity information against official records.
- If risk is detected, the system triggers additional verification steps, such as live ID checks.
- Orders are either approved, held, or flagged depending on their risk score (low, medium, high).
This process happens in real time, ensuring retailers can protect themselves without slowing down genuine customer purchases.
Why Retailers Need Smarter Protection
The rise of digital payments and global e-commerce has made chargeback fraud easier to commit — and harder to detect. Traditional fraud prevention methods often fall short because they focus on stolen payment credentials, not post-purchase disputes.
Vigilo Chargeback Prevent goes beyond simple payment validation. By using machine learning and historical trend analysis, it identifies patterns that signal potential disputes before they happen. This allows retailers to:
- Protect revenue from fraudulent or high-risk orders.
- Reduce operational costs linked to disputes and investigations.
- Improve customer trust by maintaining fair, transparent processes.
- Streamline operations with seamless checkout integration.
Industry Insights: A Smarter Future for Retail Security
Peter Hesketh, CTO of Vigilo Networks Ltd, emphasises the importance of innovation in this space:
“Chargeback fraud is one of the fastest-growing threats to online retailers. Vigilo Chargeback Prevent empowers businesses to protect their revenues without compromising trust. It’s about giving retailers the confidence to serve their customers while knowing their business is protected.”
Industry analysts agree that AI-driven fraud detection will play a pivotal role in shaping the future of e-commerce. By 2027, it’s estimated that over 80% of online retailers will adopt some form of AI-based fraud prevention. Vigilo is proud to be at the forefront of this shift.
See Vigilo in Action at Ecommerce Expo 2025
The official launch of Vigilo Chargeback Prevent will take place at the Ecommerce Expo 2025, the UK’s largest retail and digital commerce event. Held at the London ExCeL Centre on 24–25 September 2025, the event brings together thousands of industry professionals to explore the latest technologies, trends, and innovations.
📍 Visit Vigilo Networks at Stand TP3 to:
- Watch live demonstrations of Vigilo Chargeback Prevent.
- Learn how the solution integrates with existing checkout systems.
- Speak directly with our experts about your business challenges.
About Vigilo Networks
Vigilo Networks Ltd is a UK-based technology company specialising in AI-driven fraud prevention and e-commerce security solutions. With a strong focus on innovation, compliance, and customer trust, Vigilo builds tools that enable retailers to:
- Safeguard revenues.
- Enhance operational efficiency.
- Stay ahead of evolving fraud threats.
Final Thoughts
Chargeback fraud is no longer a minor inconvenience — it’s a global problem costing retailers billions. As fraud tactics evolve, so must the solutions designed to stop them. Vigilo Chargeback Prevent represents a smarter, AI-powered way to protect revenues, build trust, and give retailers the peace of mind they deserve.
If you’re attending Ecommerce Expo 2025, make sure to stop by Stand TP3 and see how Vigilo is changing the future of chargeback prevention.
