The threshold that blocks fraud accounts also catches customers

The options

The order shown is not a ranking of preference.

1. Option 1

   Allow only verified accounts

   Reduces fraud handling but cuts off access for some existing customers.

2. Option 2

   Run a manual verification route in parallel

   Maintains customer access but increases review costs and discretion.

3. Option 3

   Operate transaction limits and after-the-fact compensation

   Lowers the barrier to joining but shares the fraud losses.

The situation as it stands

Refund fraud by synthetic accounts has increased seller losses. Decision deadline: 14 days until the automated fraud prevention contract.

A fictional online marketplace · small business owners

1. Premise 1Refund fraud by synthetic accounts has increased seller losses.
2. Premise 2New verification reduced forged accounts but excludes customers with old mobile phones.
3. Premise 3Adding manual verification staff increases cost per transaction and response time.

Where it holdsSets the join and verification procedures for the cooperative marketplace. Cannot replace the issuance of customers' public identity credentials.

What is still unknown

1. Unknown 1How much identity verification reduces actual transaction fraud
2. Unknown 2The scale of excluded customers and alternative means

Signals to decide again

• Define what observation, who is responsible, and what confirmation window can check "how much identity verification reduces actual transaction fraud," and re-judge if new confirmation changes the tradeoff between the options.
• Define what observation, who is responsible, and what confirmation window can check the "scale of excluded customers and alternative means," and re-judge if new confirmation changes the tradeoff between the options.