Define Early Fraud Warnings (EFWs).

Define Early Fraud Warnings (EFWs).

• A. Early fraud warnings are notices from card networks about payments suspected fraudulent, created when a cardholder lodges a fraud claim with their issuing bank. This is before an official chargeback.
• B. EFWs are refunds issued automatically after fraud is detected.
• C. EFWs are only sent after a dispute is filed.
• D. EFWs are promotional offers for secure checkout.

Answer: (A)

Early Fraud Warnings are alerts from card networks that a payment may be fraudulent, created when a cardholder reports fraud to their issuing bank. They arrive before a formal chargeback is filed, giving you a heads-up to review or cancel the transaction and adjust risk settings. This isn’t a refund or something that happens only after a dispute, and it isn’t promotional material. Not every warning leads to a chargeback, but it’s a helpful warning signal to prevent losses by acting earlier.

Early Fraud Warnings are alerts from card networks that a payment may be fraudulent, created when a cardholder reports fraud to their issuing bank. They arrive before a formal chargeback is filed, giving you a heads-up to review or cancel the transaction and adjust risk settings. This isn’t a refund or something that happens only after a dispute, and it isn’t promotional material. Not every warning leads to a chargeback, but it’s a helpful warning signal to prevent losses by acting earlier.