5 Things Security Companies Can Learn From Credit Card Industry
Submitted by Sarah Kuranda on
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.