Merchants often tighten fraud detection rules during the holiday season, leading to the rejection of legitimate customers alongside fraudsters. Analysis from TransUnion indicates that while fraud attempts increase, the overall fraud rate as a percentage of total transactions often decreases during peak shopping periods like Thanksgiving through Cyber Monday. Companies like pmtbox advise businesses to analyze their actual fraud rates and false positive rates before implementing stricter measures, emphasizing that overly cautious rules can alienate new and seasonal shoppers, impacting future customer lifetime value. AI
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RANK_REASON Opinion piece from a Forbes contributor discussing business strategy related to fraud detection.
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