Think of how many different stores you can visit online in a day compared with doing the same by car. Fraudsters can do far more damage online before activity appears on the radar screen of the credit card company monitoring the activity of its customers' accounts. If the dispute can't be resolved, the bank covers the costs. In the Internet marketplace, the merchant doesn't have a customer's signature, and thus assumes all the risk in accepting an order. Worse, the merchant is likely charged penalties to cover the bank costs to process the dispute.
Nothing is black and white in regard to predicting fraud.
It can be very difficult to determine a good online customer from a fraudster. For that reason, most companies that have been successful at keeping their fraud costs under control have recognized the importance of a case management process combining fraud tools with manual reviews of high-risk orders. Successful merchants use the latest fraud tools available to select a certain percentage of high-risk transactions to screen individually. That means that 95 percent of your orders are valid. The goal of technology tools is to help your case managers focus their efforts to find the five percent of fraudulent orders.