Chargeback Scams Threaten Billion-Dollar Food Delivery Market
By: Abdul-Karim Ngoliba
Food delivery services are thriving, but so are fraudulent refund schemes that threaten the industry’s financial stability. With 48% of consumer fraud cases tied to false refund requests, many restaurants are being forced to absorb the losses while footing hefty bills. The explosion of online food delivery, growing from 800 million users in 2018 to 2.9 billion in 2024, has made it easier for scammers to exploit refund loopholes. This has left restaurants—especially small businesses—vulnerable to financial strain, often without recourse against dishonest customers.