Make Your Holiday Season the Most Wonderful Time of the Year with Custom Fraud Models

By Tim Laudenbach May 06, 2016

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As a fraud manager, you plan for holidays well ahead of Thanksgiving. You hire additional staff to deal with the onslaught of volumes that will undoubtedly hit your fraud review queue.

You try to determine what held percent to target and how many additional people you need to meet your customer expectations.  You worry about budgeting enough overtime to ensure the backlog of orders can get worked.  The amount of holiday volume can drive up labor expense and customer dissatisfaction, and it draws negative attention to the fraud team.   

It doesn’t have to be like this.  There is a better way.

The trick is picking the correct percentage to hold during peak times.  With fraud scoring models, you can determine what percentage of orders your team can review while ensuring the highest risk orders get reviewed.  This allows you several ways to approach the holiday season and helps the fraud team achieve objectives without excessive expense—all while keeping customers happy.

Predictive fraud scoring models give you the flexibility to focus on several key performance indicators (KPIs) to meet your objectives.  For example, the model can be customized to target any of the following KPIs:  

  • Bad debt (loss) rate
  • Fraud held percentage
  • Fraud held volume  


In addition, you can match the fraud held volume to available resources or even target by day of the week, Thanksgiving through Cyber Tuesday.

To meet your objectives during the holiday season, you need to start planning today.  In order to successfully deploy a predictive fraud scoring model, your next steps should be:

  • Determine the volume of orders your holiday team can review per day
  • Use historical volume
  • Leverage anticipated growth rates for the season
  • Target a held rate in line with team throughput


With these steps, fraud scoring models can save your fraud team from excessive expense and stress during the holiday season.

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About the Author

Tim has 20+ years of experience in the card not present industry and is helping merchants solve their CNP fraud problems with eBureau. In his free time, Tim enjoys playing hockey, golf and attending live theater and music performances.