Data Retention Limits for Online Fraud Signature Telemetry
Online fraud signature telemetry degrades in predictive power within ninety days, making retention past six months commercially and legally non-viable.
Payment Fraud Metrics
Meaning
Quantitative measurements track the frequency and volume of unauthorized or deceptive financial transactions. Use of payment fraud metrics allows a merchant to evaluate the effectiveness of their security systems and the level of risk in their sales channels. These figures are essential for maintaining the trust of customers and the approval of banking partners.
Detection Efficiency
Security teams use data to see how many fraudulent attempts were stopped before the transaction was completed. The detection efficiency of a system is measured by the ratio of blocked fraud to the total amount of fraud attempted. Improving this rate involves updating the rules and algorithms used to identify suspicious behavior.
Loss Quantification
Financial impacts of successful fraud include the value of the stolen goods and the fees associated with chargebacks. Loss quantification provides a clear picture of the total cost of security failures over a specific period. These data allow the business to decide how much to invest in new prevention technologies.
When losses exceed the cost of the security upgrades, the investment becomes a logical choice for the company. High loss rates can also lead to higher processing fees from credit card networks as the merchant is seen as a higher risk.
Risk Evaluation
Analysis of the geographic origin and the timing of fraudulent transactions helps in identifying new threats. The risk evaluation of a payment method determines whether it should be offered to certain customers or in specific markets.