As retailers grapple with this problem and implement varied solutions for fraud-detection and verification, the most common problem is “false positives” – orders which are not fraud but classified as fraud. This is resulting in loss of a different kind – declining customer satisfaction and increasing customer frustration; During the holiday season such scenarios will lead to a significant loss of loyal customers.
Convergytics deployed a machine learning solution built on a big data enabled data layer to enable accurate fraud detection in real time. The solution which used a combination of unsupervised, supervised and heuristic analysis increased prediction of accuracy from 82% to nearly 93%.
The different levels of fraud severity have helped in implemented less intrusive tiered verification process.
Our client has realized in nearly $200 Million in savings in the last holiday season and has seen an uptick in the customer satisfaction by 14%.