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Measuring False Positives is Not an Exact Science but Using Multiple Metrics can Provide a Better Understanding

When a legitimate customer has their order declined because of fraud concerns they may purchase from a competitor and may never return to the merchant who turned them away. This is not only painful in terms of losing the sale and potentially the lifetime value of that customer, but this makes measuring false positives difficult. Even if an organization identifies customers who reattempt their transaction or call-in to customer service to complete their order, this is not a complete representation of the volume of sales insults; it may only be the tip of the iceberg.

The first step to effectively measuring false positives is understanding that it is not an exact science, that the metrics we can use are proxies, and the more methods we have for deriving and measuring these proxies the closer we can come to understanding the whole picture.

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