Measure What Matters Quiz - 5 Additional Metrics to Measure

Why is it worthwhile to measure false positives/false declines?

Select only one.

Fraud fighters hate to get anything wrong and chase accuracy as a top priority

Analyzing false declines to work out what changes in a fraud system could make them an approval in future is one of the most powerful ways fraud teams can boost their company’s bottom line

Measuring false declines is a good investigative training task for junior fraud analysts

It’s not worth trying to measure false declines, because you’re always having to make an educated guess

What are popular ways to measure false declines?

Select all that apply.

Review and research all declines to see which could have been saved

Go through transactions that were approved despite being relatively high risk and try to find the patterns between them which allowed them to be approved

Review and research a sample of all declines to see which could have been saved

Review and research only transactions that were canceled automatically to see which could have been saved

Track the transactions rejected by the bank for insufficient funds or mismatched details

Review and research only transactions that were canceled manually to see which could have been saved

Examine the customers who dropped out of the checkout process at checkout and try to investigate why this occurred

Review and research transactions which were approved on a second attempt from the customer

Review and research calls to customer support complaining about being declined

What do fraud teams need to remember if they are reviewing and researching either transactions approved on a second attempt, or calls to customer support complaining about being declined?

Select only one.

That it’s not possible to ever have total certainty about whether these transactions are fraudulent or legitimate

To wait until the time for a possible chargeback has passed before marking the transaction in the system as a false decline - in case it was fraud after all

That these transactions are certainly legitimate

What kind of chargebacks are relevant for a chargeback recovery rate?

Select only one.

All chargebacks

All fraud chargebacks

All chargebacks that were registered as fraud chargebacks but your team has strong reason to believe come from transactions carried out by the cardholder

Any chargebacks you think you can win

How can fraud teams help improve chargeback recovery rates?

Select only one.

Research patterns of successful disputes and patterns to identify first party fraud

Take on the work of chargeback recovery because fraud teams have so much insight into identities and what causes chargebacks

Establish relationships with issuing banks

How can collaborating closely with customer support benefit the fraud team?

Select all that apply.

Receive insight into false declines so the fraud system can be tweaked to reduce these if necessary

It helps share the responsibility for preventing fraud

When false declines are likely to go up due to changes in company policy, letting customer support know about this in advance helps them to prepare and handle the challenge effectively

Customer support can be a good source of additional fraud analysts during busy seasons

Receive insight into fraud attacks that attempt or succeed to use customer support calls or chats as part of the attack

Why do fraud prevention teams have an impact on customer lifetime value?

Select only one.

The work of a fraud team impacts customers’ average purchase frequency and average customer lifespan because fraud prevention influences customer experience through the lifecycle

The work of a fraud prevention team impacts everything about the customer journey so there’s a knock-on effect to take into account in terms of customer lifetime value

Customers avoid brands with high fraud rates so if the fraud team isn’t doing their job well enough customer lifetime value will go down

How can fraud teams mitigate the impact of account takeovers on customer lifetime value?

Select only one.

Invest in preventing account takeovers, if necessary setting up a separate team or task force to deal specifically with this challenge

Measure the average impact of ATO on customer interaction with the brand after the attack, and then one by one try and measure possible measures to improve customer experience of ATO awareness and rebuild trust

It’s not possible to mitigate the impact of account takeovers; customers inevitably lose trust and act accordingly

What is the key thing to remember about measurements and metrics?

Select only one.

They’re about defending the fraud team from accusations that you don’t do enough work

They’re a way of keeping score in the fight against fraud

They’re all about showing the impact that the fraud prevention team has on the company, its bottom line, and customers’ experience on and with the site or app

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