Fraud rate and detection rate calculator
Enter transactions or applications, confirmed fraud, what was stopped and good customers flagged. See the fraud rate by count and value, the detection rate and the false positive ratio.
Fraud rate by count
300 fraud cases in 250,000 transactions is a fraud rate of 0.12% by count. By value, it is 0.30%, or 30.4 basis points, and €22,800 got through.
The detection rate was 70.0% by count and 60.0% by value. 1,890 good customers were flagged to stop 210 fraud cases, a false positive ratio of 9.0 : 1.
Fraud and flags
The first bar shows fraud value stopped and lost, and the second splits flags into fraud and good customers.
All measures
| Measure | Percent | Basis points |
|---|---|---|
| Fraud rate by count | 0.12% | 12.0 |
| Fraud rate by value | 0.30% | 30.4 |
| Fraud loss rate | 0.12% | 12.2 |
| Detection rate | 70.00% | |
| Detection rate by value | 60.00% | |
| False positive ratio | 9.0 : 1 | |
| Fraud share of flags | 10.00% | |
| Share of good customers flagged | 0.76% |
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Show formulas
Fraud rate by count = Confirmed fraud cases ÷ Transactions or applications Fraud rate by value = Confirmed fraud value ÷ Total value (Basis points = % × 100) Fraud loss rate = (Confirmed fraud value − Value of fraud stopped) ÷ Total value Detection rate = Fraud cases stopped ÷ Confirmed fraud cases Detection rate by value = Value of fraud stopped ÷ Confirmed fraud value False positive ratio = Good customers flagged ÷ Fraud cases stopped Fraud share of flags = Fraud cases stopped ÷ (Fraud cases stopped + Good customers flagged) Share of good customers flagged = Good customers flagged ÷ (Transactions or applications − Confirmed fraud cases)
One basis point is a hundredth of a percent. The fraud rate by count and by value can differ when large cases get through, so both are shown.
Fraud rate and detection rate
Fraud rate compares confirmed fraud with all transactions by count, or confirmed fraud value with total transaction value. The calculator also works out the detection rate, false positive ratio and fraud rate in basis points.
A single fraud rate can hide different outcomes by count and value. The detection rate shows the share of confirmed fraud stopped, and the false positive ratio shows good customers flagged in relation to fraud cases stopped.
Fraud rate questions
How do I calculate a fraud rate?
Divide confirmed fraud cases by transactions to calculate the fraud rate by count. By value, divide fraud value by total value.
What does fraud ratio mean?
Fraud rate describes confirmed fraud in relation to transaction volume. This calculator shows the rate by count and by value.
How do I calculate fraud rate in basis points?
Divide fraud value by total value to get the fraud rate by value. Multiply the percentage by 100 to express it in basis points.
How is fraud detection rate calculated?
Divide fraud cases stopped by confirmed fraud cases to get the detection rate by count. By value, divide the value stopped by the fraud value.
What is the false positive ratio in fraud?
It compares good customers flagged with fraud cases stopped. This calculator shows the ratio as good customers flagged per fraud case stopped.