PayTran (A): Managing Fraud in Peer-to-Peer Transactions

Beatriz Guerrero managed the fraud prevention group at PayTran, a leading online payment system for small to medium online firms. Besides processing customer payments, PayTran also provided fraud insurance to firms that used its services. PayTran was struggling with the high level of payout for its fraud insurance program. Guerrero's proposal to improve fraud detection had received a green light from senior management. She had implemented a pilot with IWantIt.com and now had a month of data regarding the performance of the new process. She had to decide whether or not to roll out the pilot changes to all clients.