Fraud & Risk
Are New Shoppers Falling out of Your Funnel Forever?
It is estimated that merchants turn away far more revenue due to false positives and false declines than they lose as a result of actual fraud. In this paper, Forter describes erroneous new shopper declines as "New User Missed Opportunities" or NUMOs and explains why such declines are especially problematic as more commerce shifts online due to the COVID-19 pandemic. NUMOs are then examined in the context of customer lifetime value, with two common root causes of false declines detailed. The document concludes with insights on how risk management can be leveraged for growth instead of simply trying to stop illegitimate transactions.