Unfortunately, those tasked with preventing CNP fraud often lack the required resources to achieve optimal performance. In fact, over 50% of the merchants surveyed in the Merchant Risk Council’s (MRC) 2015 Global Fraud Survey cited ‘lack of sufficient internal resources’ as one of the top three eCommerce fraud challenges they faced in the past year.
Senior executives do not allocate sufficient resources to fraud management because they fail to appreciate the true impact fraud operations have on their business as a whole. Risk and fraud professionals, meanwhile, struggle to clearly present the business case for investing in fraud operations to their superiors.
Along with our colleagues at the MRC, Riskified created the Cost of Fraud Calculator – a free, interactive tool that presents a holistic picture of the true cost of fraud for an organization and visualizes the business impact in a manner that can be shared with executives. Our hope is that senior managers will be more open to allocating resources to fraud management operations once they see the impact on sales revenue and customer experience.
The tool, which was piloted with several merchants in the past few months, was officially launched on the new MRC website.
After logging in to the calculator, you will be guided through three sections – cost of managing fraud, cost of declines, and cost of poor customer experience. Based on your input, the calculator generates a Cost of Fraud Report – highlighting key costs and suggesting ways to improve your company’s fraud prevention operations. You can easily share the report with colleagues within your organization using the “share” button.
Everyone is welcome to try out this free tool, and we hope you will find it useful.
If you have any questions regarding the Cost of Fraud Calculator, feel free to contact us.