The Real Cost Of Fraud Detection

By Artem Tymoshenko, CEO, Maxpay

Anyone who has had something stolen from their home or car knows the feeling of helplessness and anger that results. This is likely why we also react strongly if we are ever accused of stealing something.

Even in the privacy of your living room, you may get the same feeling when you try to buy something online and get denied for “security reasons.” It seems like there is an all-out war on fraudsters underway and the collateral damage is mounting.

“It is better that ten guilty persons escape than that one innocent suffer.”

We can be certain that when Sir William Blackstone penned those words over 200 years ago he wasn’t thinking about their application to theft deterrence and fraud detection in the twenty-first century. But, his words are actually eerily prophetic to the current situation.

We are naturally afraid of theft and fraud. When it happens to us, we are traumatized. But for businesses, it is just part of the process of doing business. The likelihood that a business will be the victim of fraud or theft is nearly 100 percent. But, businesses shouldn’t take it so personally. Business should be about the numbers. That’s what we love, and hate, about them—they leave emotion at the door. At least they should.

While most online businesses are getting good at detecting fraud and flagging potentially shady transactions, the bigger issue is

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