Description: The fraud rate refers to the percentage of transactions identified as fraudulent over a given period. This indicator is crucial for e-commerce businesses as it allows them to assess the effectiveness of their security measures and the trust they can offer to their customers. A high fraud rate may indicate issues in user authentication, payment validation, or data protection, which can lead to significant financial losses and damage to brand reputation. Conversely, a low fraud rate indicates that the implemented security measures are effective and that customers can transact with confidence. The fraud rate is calculated by dividing the number of fraudulent transactions by the total number of transactions made, multiplied by 100 to obtain a percentage. This data is fundamental for strategic decision-making in the online transaction sector, as it enables companies to adjust their security policies and improve customer experience while minimizing the risk of financial losses.
