You make a business decision on how likely it is to be legitimate and, based on the margin profile of the business, whether you want to prioritize for conversio

You make a business decision on how likely it is to be legitimate and, based on the margin profile of the business, whether you want to prioritize for conversions or for not being defrauded. Avoiding $10k of legit sales to save $1k of fraud is very plausibly not a winning strategy. People do subjectively weird things, all the time at Internet scales. Here’s a very real example: Amazon account opened in 1996 from Illinois. Credit card billing address in Chicago. Has never purchased electronics or anything over $200. Almost dormant for several years. 2007 rolls around and the account is accessed from a novel IP address in Nagoya and buys a $2k laptop for a person with an unrelated name living in Ohio. Place your bets: was this transaction fraud? No, it was not. I bought that laptop, on behalf of a coworker, an Indian woman working with me in Nagoya who had no credit card and no U.S. banking relationship. She had a member of her extended family, living in the U.S., and wanted to buy them a laptop to celebrate their entrance into University. She gave me physical yen for the laptop. Impressively, IMHO, Amazon let this transaction go through without stopping me, though I was on pins and needles (and told her as much). I assumed this would trip every possible flag, and (as a Japanese salaryman) $2k was a lot of money to both of us.