In a major move to crack down on first-party fraud, Socure, a global leader in digital identity verification and fraud prevention, has unveiled its Dispute Abuse Score the industry’s first risk model built specifically to identify individuals likely to exploit transaction dispute processes, including Regulation E (Reg-E) policies.
With fraud tactics growing more sophisticated by the day, financial institutions and digital platforms face mounting losses from bad actors abusing consumer protection rules. Socure’s latest solution gives these organizations a proactive edge helping them identify and respond to dispute abuse both during and after transactions.
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“Dispute and Reg-E abuse are some of the trickiest types of fraud to catch,” said Johnny Ayers, Chief Executive Officer and Founder of Socure. “These bad actors often look like everyday customers, making it incredibly hard for teams to tell the difference. That’s exactly why we built the Dispute Abuse Score to give organizations the insight they need to spot repeat abusers before the damage is done. “Fraudsters hide behind clean or slightly manipulated identities to exploit protections that were meant to help consumers not deceive businesses. With the Dispute Abuse Score, we’re giving risk teams game-changing intelligence they’ve never had before.”
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A New Line of Defense Against Hidden Abusers
Built on Socure’s proprietary First-Party Fraud Consortium and Identity Graph, the Dispute Abuse Score leverages data from over 350 million identities and nearly 30 billion transactions across sectors. It analyzes signals like dispute frequency, account closures, payment denials, device data, and geolocation—spotting patterns that often go undetected when institutions work in isolation.
This solution empowers fraud and risk teams to:
Auto-approve low-risk disputes, easing investigation backlogs
Reject high-risk transactions to prevent revenue loss
Flag repeat abusers and require additional identity verification
Delay or adjust fund availability for high-risk users
Feed insights back into internal models for smarter decision-making over time
“Fraudsters are constantly finding new ways to game the system, especially when it comes to dispute abuse,” said Mandy Goettelman, Chief of Staff at Green Dot Corporation. “Socure’s new Dispute Abuse Score is the kind of smart, forward-thinking tool we’ve been needing. It helps us stay ahead of repeat offenders, protect our customers, and make sure real disputes are handled quickly and fairly “We’re proud to be a founding member of Socure’s First-Party Fraud Consortium, working together to protect customers and ensure genuine disputes are handled fairly.”
Alarming Trends in Dispute Abuse
Recent Socure research highlights just how widespread and costly this issue has become:
40% of U.S. consumers have disputed at least one transaction in the past 24 months
15% have disputed charges at multiple institutions within a single year
Those with disputes at two or more institutions are 5x more likely to be classified as abusers
In 2024 alone, 79% of Gen Z consumers reported disputing payment charges
Gen Z and Millennials combined make up 72% of all consumers with disputes
“Socure is uniquely positioned to lead the fight against first-party fraud,” said Jim Mortensen, Strategic Advisor at Datos Insights. “The Dispute Abuse Score provides real-time intelligence to help institutions reduce losses while creating a more trustworthy digital experience.”
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Fighting Fraud Across Industries
Socure’s new solution is part of its Sigma First-Party Fraud suite, which addresses fraud patterns in sectors like e-commerce, gig economy, and gaming where abuse often shows up as “buyer’s remorse” or “bettor’s remorse.” The Dispute Abuse Score is the second major model under this initiative, designed to identify serial offenders who exploit systems without consequences.
With RiskOS at the core of its offerings, Socure continues to redefine how organizations manage risk, friction, and trust at every stage of the customer lifecycle.
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