The Role of Man-in-the-Middle Attacks in Chargebacks (2025)

disputeresponse Aug/ 18/ 2025 | 0

Cyber threats are evolving rapidly in 2025, and one of the most damaging yet overlooked types is the man-in-the-middle (MITM) attack. For U.S. businesses, especially those in ecommerce, these attacks can lead to significant financial losses—including costly chargebacks.

In this post, we’ll break down how MITM attacks work, how they cause chargebacks, and how businesses can protect themselves.

What Is a Man-in-the-Middle (MITM) Attack?

A man-in-the-middle attack occurs when a malicious actor secretly intercepts communication between two parties—usually a customer and a business—without their knowledge. The attacker can monitor, modify, or steal sensitive data such as:

• Login credentials
  
• Credit card numbers
  
• Billing and shipping details
  
• Transaction data
  

How MITM Attacks Lead to Chargebacks

When attackers gain access to a customer’s payment information through MITM attacks, they can use it for unauthorized purchases. Here’s how that can result in chargebacks:

1. Unauthorized Transactions

Fraudsters use stolen card information to make purchases. The legitimate cardholder notices these and initiates a chargeback.

2. Disputed Orders

The customer may not recognize the transaction because it was tampered with, altered, or redirected mid-communication.

3. Delivery to Fraudulent Addresses

Attackers often change shipping information during the transaction, leading to disputes over non-delivery or goods received by the wrong party.

4. Breakdown in Trust

Repeated fraud incidents damage customer trust and increase the likelihood of “friendly fraud,” where buyers dispute legitimate transactions due to confusion or frustration.

Common Scenarios Where MITM Attacks Happen

MITM attacks often exploit weak points in online communication, such as:

• Unsecured Wi-Fi networks
  
• Phishing emails with malicious links
  
• Infected browser extensions or apps
  
• Outdated security certificates on websites
  

Signs Your Business Is a Target

Watch for these red flags:

• Spike in chargebacks with “unauthorized” or “fraudulent” reasons
  
• Multiple failed login attempts on customer accounts
  
• Unusual shipping address patterns
  
• High refund or complaint rates shortly after orders are placed
  

2025-Proof Security Measures to Protect Your Business

To combat MITM attacks and prevent chargebacks in 2025, implement these security best practices:

🔒 Use End-to-End Encryption (E2EE)

Ensure all communications between your website and customers are encrypted using TLS/SSL.

👨‍💻 Implement Multi-Factor Authentication (MFA)

Add extra verification steps to secure customer and admin logins.

🧠 Educate Customers

Inform users about phishing and insecure connections. Include warning banners when necessary.

🛡️ Use a Chargeback Management Platform

Services like Dispute Response can monitor transaction data, detect anomalies, and help you fight chargebacks effectively.

🔍 Enable Real-Time Fraud Detection Tools

Deploy AI-powered fraud tools that monitor behavior and flag suspicious activity immediately.

Final Thoughts: Stay Proactive in 2025

Man-in-the-middle attacks are a serious threat to any business accepting online payments. Left unchecked, they can lead to high chargeback rates, lost revenue, and reputational damage.

With the right mix of cybersecurity, customer education, and chargeback management, you can stay a step ahead in 2025.