Fraud budgets are moving in two different directions. Fifty-one percent of global eCommerce merchants expect spending on fraud-management staff to remain flat or decline, while 63% plan to increase investment in fraud-management technology.

The numbers frame fraud orchestration as an operating-efficiency question as well as a security one. “Orchestrating Trust: The Future of Fraud Prevention in Payments,” produced in collaboration with Spreedly, examines how merchants can coordinate identity checks, behavioral analytics, device intelligence, transaction scoring and payment routing through a common decision layer. The report also points to mounting pressure to control the cost of fraud operations as payment flows and attack methods become more complex.

Merchants are also trying to avoid making fraud controls more expensive by rejecting good customers. Eighty-five percent cite preventing fraud without degrading the customer experience as their biggest fraud-prevention challenge. Nearly half, 47%, estimate that as much as 5% of legitimate orders are wrongly declined as fraudulent.

The budget data put a measurable constraint around that problem. Merchants are preparing to spend more on fraud technology without a comparable increase in fraud staffing. Orchestration can become the layer that determines when additional checks are needed, when trusted customers can move through with less friction and how several fraud tools are used without requiring teams to manage each integration separately.

At PYMNTS Intelligence, we work with businesses to uncover insights that fuel intelligent, data-driven discussions on changing customer expectations, a more connected economy and the strategic shifts necessary to achieve outcomes. With rigorous research methodologies and unwavering commitment to objective quality, we offer trusted data to grow your business.

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