Decisioning & AI
What is false positive?
A legitimate transaction or customer activity that is incorrectly flagged as suspicious by a fraud detection or compliance system. High false positive rates are one of the most significant operational challenges in risk management, leading to unnecessary customer friction, wasted analyst time, increased operational costs, and potential customer attrition. Reducing false positives without increasing false negatives is a key objective of AI-driven risk decisioning.
How it works
Example: A customer traveling abroad makes a hotel payment that triggers a fraud alert due to the unusual geographic location. An analyst reviews and confirms it as a legitimate purchase, adding it to the customer’s travel profile to prevent future false positives.


