Fraud Scoring

What is Fraud Scoring?

Fraud scoring is a predictive modeling technique that assigns a risk value to a transaction based on its likelihood of being fraudulent. The score is generated by comparing the transaction’s attributes against historical data and known fraud indicators in real-time.

Why It Matters

• It provides a standardized way for merchants to evaluate the risk of every order and automate their response.

• Fraud scores allow businesses to set different thresholds for different products, regions, or customer segments.

• By using a numerical score, merchants can more easily track their fraud trends and the performance of their security systems over time.