Your truth is true but not necessarily TRUE.
Let’s accept that this one number from this one study is accurate: 6.25% of e-commerce transactions are attempted (or successful) fraud.
Now imagine we have three internet consumers:
- Buyer #1 has completed 100 transactions and 6 of them were fraudulent.
- Buyer #2 has completed 25 transactions and 3 of them were fraudulent.
- Buyer #3 has never completed 500 transactions and 0 of them were fraudulent.
Each buyer has a truth about e-commerce. Each of those truths is based on real experiences and real feelings. But only Buyer #1 is likely to have his truth correctly map onto TRUTH. Buyer #2, on the other hand, is likely to have overlearned the lesson that fraud is possible due to his unlucky set of outcomes; if he transacted 1000 more times we would confidently expect his 12% fraud rate to drop by 50%. Sadly, those 1000 transactions may never occur since Buyer #2’s truth blinds him from TRUTH. We can dub him too skeptical, which protects his downside at the expense of his upside. Buyer #3 suffers the opposite fate. After a remarkable string of good luck, Buyer #3 is too trusting, which exposes him to all upside and downside.