Food & Delivery Fraud: Benchmarking Risk and Tracking Trends

Question 1

What are the most common types of fraud in food and delivery services?

Accepted Answer

The most common types of fraud in food and delivery platforms include refund and promotion abuse, account takeover (ATO), credential stuffing, and credit card fraud. These threats often involve customers falsely claiming missing items for refunds, fraudsters exploiting new user discounts with fake accounts, and criminals using stolen credentials or payment data to place fraudulent orders. Platforms with rapid transaction speeds and minimal identity checks are especially vulnerable.

Question 2

How can food delivery businesses reduce chargebacks and fraudulent refunds?

Accepted Answer

To reduce chargebacks and fraudulent refunds, food and delivery businesses can implement real-time fraud detection, behavioral analytics, and account verification tools like two-factor authentication or PIN-based pickup verification. Tracking fraud trends and comparing performance with tools like Sift’s FIBR (Fraud Industry Benchmarking Resource) also helps businesses identify vulnerabilities, reduce refund abuse, and stay ahead of seasonal fraud patterns.

Question 3

3. Why is fraud benchmarking important for quick-service restaurants (QSRs)?

Accepted Answer

Fraud benchmarking helps QSRs understand how their fraud rates compare to industry standards, enabling smarter decisions around risk, operations, and customer experience. Tools like Sift&#8217;s Fraud Industry Benchmarking Resource (FIBR) allow businesses to track metrics like payment fraud, ATO, and chargeback rates by industry and region. For high-speed, high-volume environments like QSRs, this visibility is key to maintaining profitability while preserving trust with customers and payment processors.

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