The Fraud Queue Threshold Nobody Rechecked
Select a defensible interim control when a fraud model shows a likely disparity in false-positive holds.
The fraud model is efficient. The payout holds are not landing evenly. The CFO wants the queue cleared before payouts close. What should Mateo recommend? Temporarily route affected borderline holds to human review, freeze wider automation changes, and run a bias audit with documented groups, labels, metrics, and reference choices. Right. This reduces immediate false-positive harm and keeps the audit evidence intact so the threshold can be changed defensibly. Lower the threshold only for first-year micro-merchants because that will quickly equalize the hold rate. Weaker. An ad hoc group-specific threshold may mask the symptom without checking fraud labels, reference groups,…
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