GoKawiilFor most teams, fraud performance is still summed up in a single metric: chargeback rate. It is visible, painful, and tied directly to card network thresholds, so it naturally becomes the north star for fraud programs.
The new VP of Fraud Strategy at IPQS, Alexander Hall, recently sat down with Jordan Harris of The Fraud Boxer to unpack a growing issue many teams are underestimating: the true impact of fraud beyond chargebacks.
These hidden impacts rarely show up in chargeback metrics but significantly affect revenue, operations, and brand trust, making it critical for organizations to broaden how they measure fraud.
The problem is that chargebacks capture only a narrow slice of fraud losses, and focusing on them alone can hide bigger issues affecting growth, customer experience, and long term profitability.
These cases eat into margins just as much as disputes, but they are rarely tagged as fraud in internal reporting, so they do not inform future risk decisions.
As an example, ecommerce and airlines are experiencing a troubling rise in account takeovers (ATOs).
While teams work hard to create seamless user experiences, successful ATOs quickly undo that effort, driving customer churn, increasing acquisition costs through negative word of mouth, and enabling off-platform identity theft through stolen PII. They also lead to direct losses like reimbursing stolen stored value, including loyalty points.
Similar patterns are emerging across industries, with iGaming platforms seeing fraudulent withdrawals after account changes, banking facing a surge in synthetic identity fraud, and money movement platforms dealing with identity theft used to create and operate fraudulent businesses.
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Opportunity Cost: Good Customers You Never See
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