See if a fraud check pays in lending
Enter your applications, fraud rate and the check’s offer. Compare declining every flag with sending every flag to manual review by net value per month.
Compare the options
The higher result is sending every flag to review, at €105,249 more per month; review means 801 reviews per month.
What makes up each result
Decline every flag
Send every flag to review
Net per month as false alarms grow
Get the result by email
The next move is to run the check in the decision flow, with each flag sent to manual review or declined by a rule, tested first on past applications. Start free
See the formulas
Fraud cases = Applications × Fraud rate Good applicants = Applications − Fraud cases Flagged fraud = Fraud cases × Fraud flagged Flagged good applicants = Good applicants × Good applicants flagged by mistake Check bill = Applications × Price per check Decline every flag: Net = Flagged fraud × Loss per fraud case − Flagged good applicants × Profit per good applicant − Check bill Send every flag to review: Net = Flagged fraud × Flagged fraud stopped × Loss per fraud case − Flagged good applicants × Good applicants who give up × Profit per good applicant − (Flagged fraud + Flagged good applicants) × Cost per review − Check bill
Every flag is treated the same way, and fraud the check misses is counted as lost. Checks that score with several thresholds are left out.
Fraud check value
This calculator combines your monthly applications and fraud rate with the money lost on a fraud case and earned from a good applicant. It also includes the check’s price and the shares of fraud and good applicants it flags.
It shows the monthly result when every flag is declined or sent to manual review. Use it to see how review costs and customers who give up change the value of the check.
Common searches
What do false positives cost in fraud prevention?
A false positive is a good applicant flagged by mistake. The calculator counts margin lost when flagged good applicants are declined or when reviewed good applicants give up.
Should flagged applications be declined or sent to manual review?
The calculator compares declining every flag with sending every flag to manual review. Declining avoids losses from flagged fraud but loses margin from flagged good applicants; review adds review cost and allows some flagged fraud to be stopped.
Does a fraud check pay for itself?
It pays in the calculator when the value saved from stopped fraud exceeds the bill and the costs created by the chosen action. The result compares the monthly net for each option.
How do review costs change the value of a fraud check?
For manual review, review cost is based on every flagged application sent for review. The calculator subtracts that cost from the value saved, along with margin lost and the check bill.
How do customers walking away change the result?
When a reviewed good applicant gives up, the calculator counts lost profit for that applicant. A higher share of reviewed good applicants who give up lowers the net value of manual review.