Measure fraud control value with clear financial metrics, scenario testing, cost visibility, and realistic benchmarking. Plan stronger defenses using evidence, trends, and smarter budgets today.
| Scenario | Transactions | Fraud Rate | Detection Lift | Investment | Estimated ROI |
|---|---|---|---|---|---|
| Retail Payments | 250,000 | 1.8% | 30 points | $80,000 | 58% |
| Digital Wallets | 600,000 | 1.1% | 24 points | $145,000 | 71% |
| High Risk Marketplace | 120,000 | 3.4% | 18 points | $98,000 | 43% |
Use the table for benchmarking. Replace values with your own operating assumptions.
Fraud Cases = Annual Transactions × Fraud Rate
Gross Fraud Exposure = Fraud Cases × Average Fraud Value
Baseline Loss = Undetected Loss + Detected Unrecovered Loss + Investigation Cost + False Positive Cost + Chargeback Fees
Improved Loss = Revised Undetected Loss + Revised Unrecovered Loss + Revised Investigation Cost + False Positive Cost + Revised Chargeback Fees + Annual Program Cost
Total Annual Benefit = Gross Savings + Compliance Savings
ROI (%) = ((Total Annual Benefit − Total Investment) ÷ Total Investment) × 100
Benefit Cost Ratio = Total Annual Benefit ÷ Total Investment
Payback Months = (Total Investment ÷ Total Annual Benefit) × 12
This calculator helps risk teams compare fraud losses against the cost of prevention controls. It captures operational effects beyond direct chargeback reduction, including investigations, false positives, recovery improvements, and recurring program costs. The result is a more balanced investment view for budgeting, vendor evaluation, and control prioritization.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.