Why is manual review time increased by false positives?
Internal staff completes a manual review and validates orders as either fraudulent or legitimate. Low risk orders are typically automatically accepted and higher risk orders are usually declined. Orders in between low risk and high risk undergo a manual review for a closer look. Faulty data increases manual review time as transactions are incorrectly tagged as fraudulent and end up in the manual review workflow. By using old or inaccurate data for chargeback review, transactions are reviewed more than necessary. Sometimes legitimate orders are substantially delayed or declined, negatively impacting customer service. Perhaps one of the worst outcomes is that while a merchant is addressing false alerts, their attention is diverted from attending to preventing actual fraud. Approximately 27% of orders undergo manual reviews that typically take five minutes to complete. Smaller merchants spending twice that amount of time. Review teams typically comprise the largest share of a retailer’s fraud management budget, draining resources from improving overall operations and working to prevent true fraud.