The E-Commerce Fraud Enigma: The Quest to Maximize Revenue While Minimizing Fraud

Report Summary

The E-Commerce Fraud Enigma: The Quest to Maximize Revenue While Minimizing Fraud

Fifty-two percent of merchants say that they ultimately approve more than 70% of the transactions they manually review.


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Julie Conroy
Head of Risk Insights & Advisory

July 26, 2022 – Fighting e-commerce fraud can often feel like battling the mythical hydra. Once insurers and merchants successfully address one attack vector, two more spring up in its place. And at the same time, e-commerce merchant executives are under enormous pressure to ensure that as many good orders as possible sail through the funnel with little to no friction. Therein lies the enigma: How best to balance the need to maximize revenue while minimizing fraud.

This report discusses the current state of card-not-present fraud and false declines for U.S. e-commerce merchants. It addresses the building blocks of current control frameworks and merchant appetite for more collaborative solutions to reduce false declines and fraud. Sponsored by Experian, this report is based on a quantitative survey, conducted by phone in May 2022, of fraud and payments executives at 207 large and midsize U.S. e-commerce firms.

This 26-page Impact Report contains 19 figures. Clients of Aite-Novarica Group’s Fraud & AML service can download this report and the corresponding charts.

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