Fraud Scale

Fraud scale refers to the assessment of how likely a transaction or activity is to be fraudulent. It uses various data points—such as transaction amount, location, history, and behavior patterns—to assign a risk score or level. This helps organizations identify and prioritize suspicious activities for further investigation. Think of it as a spectrum where transactions are evaluated from low risk to high risk, enabling efficient resource allocation and stronger fraud prevention. The goal is to balance catching genuine frauds while minimizing false alarms, ensuring security without disrupting legitimate activities.