85% of merchants seek to cut friction without fraud risk: Survey
Nearly half (47 per cent) of respondents estimate that up to 5 per cent of legitimate customer orders are falsely declined. For the respondents, a 5 per cent false decline rate equates to approximately $50 billion in lost revenue that, with the right fraud management approach, can instead be converted into topline growth, according to the survey conducted by Riskified.
About 85 per cent of merchants struggle to reduce friction for good customers without raising fraud risk, a Riskified survey has revealed. With e-commerce sales nearing $8 trillion by 2028, merchants lose up to $448 billion annually to fraud and false declines. Nearly half report 5 per cent of legitimate orders falsely declined, costing $50 billion.
Approximately 54 per cent of respondents selected 'initial checkout and/or purchase flow' as the area that offers the greatest opportunity for improvement in fraud prevention, signalling a focus on reducing friction and risk at this critical point in the customer journey.
'Fraud isn't a back-office problem anymore — it's a front-line business decision,' said Jeff Otto, chief marketing officer, Riskified. 'This survey confirms that the most successful companies are those that treat fraud strategy as a key enabler for growth, conversion, and customer trust.'
Conducted during Ascend 2025 in North America, the survey captured insights from over 130 professionals across the e-commerce ecosystem, including merchants responsible for approximately $1 trillion in annual online transaction volume.
Fibre2Fashion News Desk (RR)
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