The short answer is yes. If you’re thinking that none of this applies to you, we’ve got some bad news: There’s no such thing as “zero fraud.”
When we hear companies say they are “low-risk” for fraud or that they’ve got fraud handled, it’s usually a sign of one of the following situations:
The company’s fraud rules are too strict. Yes, if your fraud filters are set to screen out anything even remotely suspicious, there’s a good chance you’re not going to see much fraud. But, the chances are even greater that you’re declining a large number of valid orders made by legitimate customers, whether they’re new to ecommerce, mis-key some of their data, or are making purchases that appear to be suspicious. Too many of those false declines can create even bigger issues than fraud.
The company hasn’t yet been identified as a target. With the amount of fraud technology available today, it’s just a question of time and market exposure. Fraudsters are continually testing combinations of credit card numbers + personal information that they steal or buy on the dark web. Eventually, fraudsters will test this information on your website — and as soon as they realize you have lax fraud protections in place, they’ll launch a large-scale attack. On the other hand, if they test your store and find that you are well-protected from fraud, they’ll move on to other stores that offer an easier target.
Related Topics
Why is it important to fight fraud?
What should businesses know about preventing ecommerce fraud?
False Declines & Approval Rates
Related Resources
State of Consumer Attitudes on Ecommerce, Fraud & CX 2021
Everything You Need to Know About False Declines
Understanding the True Cost of False Declines
The State of False Declines in E-Commerce [Infographic]
How to Stop Leaving Money on the Table: An Enterprise Ecommerce Fraud Discussion [PODCAST}