Focus On Minimizing Threats, Not Preventing

The downside of using probabilistic and deterministic risk assessment in determining fraud and security risks is that it often is a damper on revenue for payment companies. The trick, the report said, is finding a balance between lost revenue and security risks. For example, the report said 7 to 8 percent of international transactions are estimated to be fraudulent. If 10 percent of international transactions are rejected out of extra precaution, the company puts 1 percent of its revenue at risk, which is equal to the estimated total direct fraud percentage. While the company still loses revenue, it is a balancing act of security against how much revenue would potentially be lost anyways.