The Growing Threat of Merchant Fraud
From card-not-present fraud to account takeovers, merchants face increasing threats to their revenue and customer trust.
$41 Billion
Annual global e-commerce fraud losses, projected to exceed $48 billion by 2025.
3.6%
Average revenue lost to fraud by e-commerce merchants, up from 2.9% in 2019.
$3.60
For every $1 of fraud, merchants incur $3.60 in costs including chargeback fees and lost merchandise.
Amount
$1,850.00
Customer
New account
Shipping
Express international
Payment
Multiple cards attempted
Risk Factors:
Merchant Fraud Detection Challenges
Merchants face unique challenges in fraud detection, balancing security with customer experience in a competitive market.
- Customer Experience Impact
False declines cost merchants more than fraud itself, with 33% of customers abandoning merchants after a decline.
- Evolving Fraud Tactics
Fraudsters constantly adapt their methods, making it difficult for static rules to keep pace.
- Limited Resources
Most merchants lack dedicated fraud teams, making efficient detection and investigation critical.
How SpottedAI Transforms Merchant Fraud Detection
Our explainable AI platform helps merchants reduce fraud losses while improving customer experience.
Reduce False Declines by 65%
Our AI models analyze hundreds of order attributes in real-time to accurately distinguish between legitimate and fraudulent transactions.
Increase Fraud Detection by 40%
Detect emerging fraud patterns earlier with our adaptive models that continuously learn from new data and evolving attack vectors.
Streamline Review Time by 50%
Clear explanations help fraud analysts quickly understand why orders were flagged, reducing manual review time and operational costs.
Improve Customer Satisfaction by 30%
When legitimate orders are flagged, provide clear explanations to customers about why, reducing frustration and support calls.