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False Positive

A false positive occurs when a system incorrectly identifies a legitimate action or transaction as suspicious or fraudulent. This means that an alert or warning triggers, even though no actual threat or malicious activity is present.

False positives can create challenges for businesses, leading to unnecessary interruptions, customer dissatisfaction, and additional operational costs. They can erode trust if legitimate customers face repeated verification requests or transaction declines.

To minimize false positives, businesses must fine-tune detection systems, use advanced analytics, and implement machine learning algorithms that can better distinguish between genuine and fraudulent activities. Balancing security with user experience maintains customer trust and operational efficiency.

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How to Reduce False Positives in Fraud Detection
False Positives Are a Pain in the Profits

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