true false-positive rate
Why understanding your fraud false-positive rate is key to growing your business
'Ecommerce businesses have a problem - one that causes lost customer revenue, yet has been historically nearly impossible to solve' Geoff Huang, VP of Product at Sift The problem stems from the inability to know their false-positive rate, which is the percentage of orders from legitimate customers that are mistakenly blocked as fraud. According to a survey conducted by CNP, 42% of ecommerce merchants don't know their false-positive rate (also known as customer insult rate). That is a startling statistic--nearly half of online sellers have no visibility into the number of good orders they inadvertently block or the subsequent revenue lost from those orders. And the news, unfortunately, doesn't get much better. Sift polled 1,000 adult consumers and found roughly 25% of insulted online shoppers--those who were falsely declined--will take their business to a competitor.