Chargeback fraud occurs when a customer makes a purchase and then disputes the charge with their bank or credit card company, claiming they did not authorize the transaction. This can happen even if the purchase was legitimate, leading to the merchant losing both the product and the payment. This type of fraud can be costly for businesses, as they may face fees and penalties in addition to losing revenue. To combat chargeback fraud, merchants often implement measures such as better customer service, clear return policies, and fraud detection tools to verify transactions before they are processed.