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Right now, you should not be solving this problem. Not only is it a problem you do not have, but solving it too early may mean you will never have the problem.

The more you try to reduce the % of fraud, the more it costs to prevent each instance of fraud. This cost is in the time you spend directly preventing fraud, the customers lost as false positives, and the extra effort legit customers must go through for your fraud protection. At a certain point, it makes more sense to instead allow some fraud, reduce the cost of fraud, and try to convert the fraudsters into legit users.

Right now, you should not be solving this problem. Not only is it a problem you do not have, but solving it too early may mean you will never have the problem. Lemme splain.

Lemme sum up. The more you try to reduce the % of fraud, the more it costs to prevent each instance of fraud. This cost is in the time you spend directly preventing fraud, the customers lost as false positives, and the extra effort legit customers must go through for your fraud protection. At a certain point, it makes more sense to instead allow some fraud, reduce the cost of fraud, and try to convert the fraudsters into legit users.

Right now, you should not be solving this problem. Not only is it a problem you do not have, but solving it too early may mean you will never have the problem. Lemme splain.

Lemme sum up. The more you try to reduce the % of fraud, the more it costs to prevent each instance of fraud. This cost is in the time you spend directly preventing fraud, the customers lost as false positives, and the extra effort legit customers must go through for your fraud protection. At a certain point, it makes more sense to instead allow some fraud, reduce the cost of fraud, and try to convert the fraudsters into legit users.

Right now, you should not be solving this problem. Not only is it a problem you do not have, but solving it too early may mean you will never have the problem.

The more you try to reduce the % of fraud, the more it costs to prevent each instance of fraud. This cost is in the time you spend directly preventing fraud, the customers lost as false positives, and the extra effort legit customers must go through for your fraud protection. At a certain point, it makes more sense to instead allow some fraud, reduce the cost of fraud, and try to convert the fraudsters into legit users.

This is a brand new app and you have no customers. You need users and you need them to find your service so valuable they want to pay for it. You need to be focusing on...

Let's look at credit cards. First problem: not everyone has one! And I don't mean just 14 year olds, 30% of people in the US do not have a credit card. Second problem: not everyone wants to give it out just to get a free account just to find out if they want to pay for it. Third problem: it complicates the account creation process: credit card number, expiration date, CVV, address, real name... this on top of the usual email address, password, and email validation.

Lemme sum up. The more you try to reduce the % of fraud, the more it costs to prevent each instance of fraud. This cost is in the time you spend directly preventing fraud, the customers lost as false positives, and the extra effort legit customers must go through for your fraud protection. At a certain point, it makes more sense to instead allow some fraud, reduce the cost of fraud, and try to convert the fraudsters into legit users.

This is a brand new app and you have no customers. You need users and you need them to find your service so valuable they want to pay for it. You need to be focusing on...

Let's look at credit cards. First problem: not everyone has one! And I don't mean just 14 year olds, 30% of people in the US do not have a credit card. Second problem: not everyone wants to give it out just to get a free account just to find out if they want to pay for it. Third problem: it complicates the account creation process: credit card number, expiration date, CVV, address, real name... this on top of the usual email address, password, and email validation. Fourth problem: 35% of people in the US have three or more cards and can easily circumvent your protection.