E-commerce · Value Creation
Fraud-tool optimization
Published · Reviewed by The Diligence Standard Team · Updated
Fraud controls should be evaluated against approval rate, chargebacks, manual review and customer friction.
Records to reconcile
- Fraud decisions and outcomes
- Approval and dispute data
- Tool and review cost
Warning signal
The business celebrates low disputes while rejecting profitable legitimate orders.
Transaction impact
Balanced controls can improve both loss rate and conversion.
Response
Optimize on net contribution rather than one risk metric.