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Choose a Fraud Threshold

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Your question is Choose a Fraud Threshold. Take a moment with it on the right.

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Scenario

You are setting the decision threshold for a fraud detection model used on a payment platform. The model outputs a fraud score for each transaction, and anything above the threshold is blocked or sent for manual review. The team needs a threshold that catches enough fraud without creating too many false declines or review cases.

Question

How would you decide on the right threshold for a fraud detection system?