How To Reduce False Positives and Increase Order Acceptance by 116%

January 31, 2018 we reported in a series of blog posts during the 2017 holidays (here, here, here, here, here and here), online fraud attacks were up dramatically in November and December, especially in the mobile channel. So if you’re seeing a surge in chargebacks this month, we understand if you’re not worried about false positives right now.  

Don’t fall into that trap! Reducing chargebacks does NOT necessarily mean incurring more false positives and reducing sales. In fact, just the opposite should hold true.

Leading enterprise-class fraud prevention systems provide greater accuracy and precision in their risk assessment and fraud detection. The result is actually FEWER false positives—even as fraud and chargebacks get reduced!

There are numerous examples of more accurate assessment delivering higher sales (fewer false positives) and lower fraud (reduced chargebacks) for all sorts of online businesses, including:

For this blog post, however, we’re going to focus on Webjet, the leading online travel agency in Australia and New Zealand.

You may know that travel is one of the top three targets of online fraud. And that Online Travel Agencies (OTAs) like Webjet are some of the biggest targets in the travel segment. But just how bad is it? The benchmark chargeback rate for the Australian Online Travel Services is 1.9%. That’s the benchmark (!), not the highest rate or even the top quintile rate.

As you might imagine, Webjet was keen on enhancing their fraud prevention capabilities. “We wanted a partner with great performance, reporting, and data analytics that would enable us to more quickly spot fraud trends so we could respond right away,” explains Tim Wagg, General Manager Customer Operations at

After running a pilot program to evaluate fraud prevention providers, Webjet selected Kount and—after optimizing the Kount Complete platform for their sales model—quickly achieved a chargeback percentage that is 98.4% lower than the industry benchmark. “Our chargeback percentage of Total Transaction Volume is 0.03% compared to an Australian Online Travel Services benchmark of 1.9%,” notes Tim.

And while Webjet’s initial focus was on reducing fraud, they quickly realized the benefits that greater accuracy provided. Tim notes that Webjet saw “a 50% reduction in bookings declined for fraud validation.” Further, the increased precision gave them the confidence to expand into markets that they had previously considered too risky. The result was an 116% increase in Total Transaction Volume over five quarters.

If you’re like most online businesses, a spike in chargebacks may cause you to increase manual reviews and/or “tighten” fraud screening. Avoid the temptation. Be smarter. Instead, discover how better, more accurate fraud prevention can actually help you increase sales while holding the line on fraud.

Want to know more about avoiding false positives? Download the eBook “The Silent Sales Killer: False Positives”. You’ll find 8 strategies for reducing false positives and increasing revenue without experiencing higher fraud losses.

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