Most fraud prevention teams are trapped in a House of Leaves situation - they have 10, 20, or even more rules running in the background, but 64% have little to no confidence in assessing whether these rules are actually working.

In this episode, Vito Petruzzelli breaks down a simple 5-step process for auditing your existing fraud rules and turning declining orders into revenue opportunities. Using real examples like the "decline all Secaucus, New Jersey orders" rule that was blocking hundreds of thousands of dollars in legitimate transactions, he shows how to identify low-hanging fruit in your rule set.

The conversation covers practical strategies for creating A/B tests with competitor rules, how to present data-driven cases to engineering teams, and why starting with high-impact rules that fire frequently gives you the biggest wins. Ben Li shares insights from conducting bi-annual rule audits, while other participants discuss common pitfalls like accidentally blocking entire email domains or IP addresses from public locations like airports.

Key topics covered:

[00:00] Intro

[03:48] Most fraud teams manage 10 plus rules

[05:28] Rules perform decline approve and hold actions

[06:46] 64% lack confidence assessing rule efficacy

[08:00] Start rule audits with inventory assessment

[08:53] Target high impact rules firing frequently

[10:07] Pull recent declined orders for analysis

[11:26] Create competitor rules for AB testing

[14:00] Ben performs bi annual rule audits

[16:11] Weekly versus monthly rule performance reviews

[18:34] Auto approve rules need regular evaluation

[20:08] Time constraints prevent rule abandonment

[22:26] Data beats dates for rule decisions

[23:55] Internal battles for rule implementation resources

[26:02] Stop the bleeding approach works

[28:05] Remove permissions instead of complex fixes

[31:19] IP address blocking catches innocent travelers

[34:10] Device signals vary by attack type

[36:11] Slack chosen for fraud team collaboration

[39:21] Prove value beyond call center operations

The discussion also explores the internal politics of getting rule changes implemented, with Jamie Ceccato and Shelley Soucy sharing war stories about fighting for resources and finding the "path of least resistance" when working with engineering teams.

Whether you're dealing with legacy rules from former employees, unclear rule logic, or simply want to prove your fraud team is more than just a cost center, this episode provides actionable steps to start your rule optimization journey today.

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