> ## Documentation Index > Fetch the complete documentation index at: https://razorpay-60c89f9a-mintlify-audit-missing-sections-1778528421.mintlify.site/llms.txt > Use this file to discover all available pages before exploring further. # Fraud-To-Sales Ratio > The fraud-to-sales ratio (FTS) is a percentage that helps you assess the volume of fraudulent transactions within your sales. It provides insights into the proportion of fraudulent transactions compared to your overall sales transactions. Network schemes like Visa and Mastercard use automated systems to monitor transactions and detect potential fraud. These systems flag suspicious transactions with unusual patterns, such as unexpected locations or atypical spending. Fraud reports generated this way help you identify and address security risks proactively without needing direct customer involvement. Understanding the fraud-to-sales ratio is crucial for several reasons: * **Risk assessment**: A higher fraud-to-sales ratio suggests a more significant risk exposure to fraudulent transactions. It signals potential vulnerabilities in the business's transaction processes, making evaluating and fortifying security measures vital. * **Financial impact**: A high ratio indicates potential financial losses due to fraud. You need to assess the extent of these losses, as they will impact profitability and overall financial health. * **Customer trust**: Fraud will weaken customer trust, and a high fraud-to-sales ratio will result in customer dissatisfaction and a loss of confidence. Addressing fraud will maintain a positive customer experience. * **Operational efficiency**: Monitoring the fraud ratio helps identify operational inefficiencies contributing to fraudulent activities. Improving operational processes can reduce the likelihood of fraudulent transactions. Risk Analytics Dashboard provides insights into the security and financial well-being of the business. It prompts proactive measures to mitigate risks, protect customer trust, and ensure the overall health and sustainability of the business. ## Calculating Fraud-To-Sales Ratio You can calculate the fraud-to-sales ratio by dividing the number of reported fraudulent transactions by the total number of transactions and multiplying by 100 to express it as a percentage. Your fraud-to-sales ratio should be below 1%, which can vary by industry. It is important to consider industry standards when figuring out your fraud-to-sales ratio. ### Example Consider you have an e-commerce business that processes thousands of transactions every month. You found that 20 of these transactions were reported as potentially fraudulent. To calculate the fraud-to-sales ratio, you have to divide the number of reported fraudulent transactions (20) by the total number of transactions (10,000) and then multiply by 100 to express it as a percentage: **Fraud-to-sales ratio** = 20/10000 x 100 = 0.2% In this example, the fraud-to-sales ratio for your e-commerce business is 0.2%, which is well below the industry standard of 1%. **Handy Tips** The fraud-to-sales ratio will be calculated based on your value selection (INR) versus absolute count. Depending on this selection, either the INR value ratio will be taken or the transaction count ratio will be considered. It is essential to clarify two key points here: **Fraud Reporting Clarification:** Network schemes run extensive fraud monitoring programs to detect and flag potentially fraudulent transactions. More often than not, these fraud reports are generated by automated systems flagging what appears to them to be suspicious transactions. These systems look at defined parameters, and if purchasing characteristics differ from what is known or expected of a consumer, they flag the transaction. It is important to understand that not all reported fraud cases will necessarily result in fraud. These reports are intended to highlight overall suspicious behaviour and help you take proactive measures to enhance your security. **Time Lag Consideration:** Understanding that the division is based on reported frauds divided by captured sales within the month is crucial. However, fraud reports may take some time to be processed and reflected in the data. Consequently, it is possible that the associated payments have occurred before or are not included in the captured payment set used for analysis. ## Dashboard Actions You can use the Dashboard to perform a detailed analysis of **Total sales value**, **Value of reported fraud**, **Fraud-to-sales** ratio, and **Number of reported frauds** over a selected period of time. Let us explore how the Risk Analytics Dashboard can help you effectively reduce your fraud-to-sales ratio: **Identifying High-Risk Transaction/Customer Cohorts:** Using the custom charts and analysis tools in the Risk Analytics Dashboard, you can quickly identify transaction or customer cohorts that significantly contribute to fraudulent activities. For example, you may notice a spike in fraudulent transactions from a particular country or Card BIN associated with specific product categories. By visualising this data through custom charts or analysing the parameters in the [downloadable list of fraudulent transactions](#download-the-list-of-fraudulent-transactions), you can gain valuable insights into potential risk factors contributing to the FTS ratio. **Identifying Risky Cohorts:** Once you have identified a risky cohort, such as a group of transactions originating from a specific IP address, you can take targeted action to mitigate the risk. For example, suppose you observe many fraudulent transactions linked to a single IP address. In that case, you can raise a request to blocklist transactions from this IP address to decline any future transactions coming from this IP address. **Taking Proactive Measures:** Using the Dashboard, you can request our risk team to [block future transactions](#block-highest-fraud-contributors) from this high-risk IP address. This proactive measure helps prevent further fraudulent activities associated with the identified cohort, reducing the likelihood of future fraud incidents. By leveraging the insights and functionalities offered by our Risk Analytics Dashboard, you can identify and address potential fraud risks, ultimately reducing the fraud-to-sales ratio. ### Download List of Fraudulent Transactions You can download the list of fraudulent transactions with parameters such as IP address, email, and phone number. To download the list, follow the steps given below: 1. Log in to your Dashboard. 2. Navigate to **Risk and Fraud** and click **Download list**. 3. On the **Download fraudulent transaction list** page, select the **duration** of fraudulent transactions and add the **Recipient's Details**. Click **Send Request**. 4. After the request is sent, you will receive an email with the file containing the list of fraudulent transactions for the selected duration. ### Block Highest Fraud Contributors Blacklisting is the process of identifying specific attributes, such as IP addresses, card BINs, or customer information, that are associated with fraudulent or high-risk transactions. Once identified, these attributes are added to a blacklist, effectively flagging them as risky. Razorpay's risk engine employs specific algorithms and machine learning techniques to analyse real-time transactions and identify potential risks. When a transaction is initiated, the risk engine checks it against the blacklist to see if any attributes match those flagged as high-risk. If the transaction contains attributes that are blacklisted, Razorpay's risk engine automatically declines or blocks the transaction, preventing it from being processed further. This proactive approach helps safeguard you from potential fraudulent transactions and reduces the likelihood of financial losses. You can block the fraud contributors by requesting a blacklist which helps lower the number of frauds. To block the fraud contributors, follow the steps given below: 1. Log in to your Dashboard. 2. Navigate to **Risk and Fraud** and click **Request blacklist**. 3. On the **Request blacklist** page. * Select **Parameter** and add **Comments** about why you want to blacklist, enter the email id to which you want to get the updates. * Upload an **XLS or XLSV** file of the list items. Click **Send request**. 4. After the request is sent successfully, Communication and confirmation regarding your request will be conducted through the support ticket. You can track your request on the Dashboard. Navigate to **Account & Settings** → **Support tickets** (under **Business settings**).