1
Baseline Measurement
Establish a baseline, such as percentage of users who encountered a fraudulent experience.
Example: FADE (Fraud Activity Detection Exposure)
Rate = 31% “Nearly 1 in 3 users were exposed to fraud signals during their session.”
2
Why It Matters
Exposure ≠ Impact: Seeing a scam doesn’t always mean churn—but it’s a signal.
Users with high FADE scores had 18% lower retention
Long-tenure users exposed to fraud were 2.3x more likely to disengage
Fraud exposure correlated with drop in conversion rate in the same session
3
Balancing Automation + Human Insight
Automation flags high-volume fraud patterns quickly.
Human analysts uncover nuanced abuse and evolving tactics.
“The cost of fraud isn’t just financial—it’s trust erosion. That’s why balance is a superpower.”
4
Executive Lens: Turning Exposure into Actionable Metrics
Retention Impact: Quantify churn rates among users with high FADE scores vs. baseline.
Revenue Risk: Estimate lost conversions or revenue per % increase in FADE.
Trust Index: Track brand trust or NPS scores in fraud-exposed cohorts.
Efficiency Gains: Show ROI of hybrid detection (automation + human review) in reducing false positives and fraud losses.
Fraud detection requires a hybrid approach combining automated systems with human expertise to effectively combat evolving threats while maintaining positive user experience.
