Top Fraud Prevention Companies [UPDATED]
Editors note: Due to the explosive growth of the ecommerce fraud prevention industry we’ve updated this post to include additional companies.
The e-commerce market is a complex and sometimes dangerous place for merchants. There are lots of opportunities to expand your business but expansion can expose you to new threats. About 50% of small businesses fall victim to fraud at some point in their business life cycle according to the Association of Certified Fraud Examiners.
Apart from exposing yourself to hacking and phishing attempts, accepting fraudulent payments can also leave you liable for a financial loss on the sale. But even that is only half the problem. The unfortunate reality is that many merchants seeking to protect themselves without the expertise or tools to do so end up overcompensating and declining too many legitimate orders. These false positive declines fly under the radar by definition, undermining consumer trust and doing huge damage to their bottom line within merchants even being aware there is a problem.
Taken together, it’s little wonder merchants struggle with how to fight against chargebacks. To help merchants find a solution that will minimize chargebacks while maximizing the acceptance of legitimate orders, we put together a list of top fraud prevention platforms and the techniques they use to disrupt fraudsters.
Below is a list of companies we profiled in this post – updated September 2022.
- Kount
- Riskified
- Forter
- Signifyd
- ClearSale
- CyberSource
- Feedzai
- Ravelin
- Sift
- Fraud.net
- Nethone
- Precognitive
- SEON
- FraudLabs Pro
- NoFraud [NEW]
- F5 [NEW]
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What are the Main Features Fraud Prevention Platforms Offer?
Automated Workflows
Automates the sending of order details, payment fraud checks, blocking of suspicious devices, fulfillment, cancellation of fraudulent orders, and more so merchants can review even a high volume of orders quickly.
Machine Learning
Uses real-time insights that are fed into the machine learning models. Machine learning does faster and more complex calculations across a much wider range of online fraud signals when compared with manual review.
Insights Dashboard
Insight dashboards report synthesize relevant fraud prevention data, display algorithmic conclusions where given, and highlight suspicious activities via a single, easy to use interface. This means there is no need to switch between multiple views to see all relevant information, in turn making it much easier to organize and effectively execute a fraud prevention process.
Device Fingerprinting
Device fingerprinting is the technique of recording information about the device a shopper uses when placing an order. A wide variety of data points are analyzed, including things like the computer’s operating system, the browser the shopper used during check out, and even the language options installed. The information collected is then used in a risk assessment to identify fraudsters. For example, a shopper claiming to be from a country whose national language is not installed on their computer can indicate the shopper is using a VPN to hide their true location.
Chargeback Guarantee
Chargeback guarantees are a contractual obligation on the part of a fraud prevention solution to cover the cost of any chargebacks incurred by a merchant using their platform. When merchants use a fraud prevention solution that offers one, they never have to pay the cost of a chargeback themselves.
Merchant Profile
Ecommerce fraud solutions are not a ‘one-size-fits-all’ type of service. Because the combination of product offerings and target audience is unique for every merchant (for many reasons such as integration complexity, pricing structure, technology limitations, etc.) the optimal fraud solution to meet their specific set of circumstances is as well.
This is why there are many different fraud platforms with unique capabilities. The most glaring example of this is the difference between those catering to specific industry segments such as SMB or enterprise merchants.
Ecommerce fraud prevention solutions for enterprise merchants use machine learning models to analyze vast amounts of transaction data to build a unique profile for each merchant in order to effectively detect fraudulent orders and reduce false positives. However, if a merchant only does small amounts of transactions these models will have difficulties in determining a proper decision.
Similarly, enterprise companies require a more complicated and deep integration with the merchant’s ecommerce platform, payment gateways, and other internal tools in order to provide an optimal service. Yet smaller merchants may not have the development resources available to allocate to implement such a deeply integrated fraud solution.
In order to provide merchants of all types and needs with options to help know how to fight chargebacks effectively for their own business, the list of platforms below offer API and/or integration options with leading existing ecommerce platforms.
Kount
Merchant Profile – Enterprise, Large, SMB’s
Automated Workflow – yes
Machine Learning – yes
Insights Dashboard – yes
Device Fingerprinting – yes
Chargeback Guarantee – yes
Supported Platforms – Magento, Shopify, SalesForce Commerce Cloud, 3DCart, Xennsoft, KIBO
Customization – yes
Pricing – available on request
Free Plan – no
Free Trial – no
Kount protects the entire customer journey with its Identity Trust Platform, which uses artificial intelligence powered by the Identity Trust Global Network to protect against account creation fraud, account takeovers, and payments fraud. Kount’s network establishes the level of trust for each identity behind every interaction based on a network of more than 32 billion annual interactions across 50+ partners, gateways, and payment service providers, 75+ industries, 250+ countries and territories, and 9,000+ customers.
Kount uses adaptive AI that combines both supervised and unsupervised machine learning to produce Omniscore, a transaction risk rating. Kount customers can use Omniscore and Kount’s flexible policy engine to fine-tune fraud prevention decisions based on desired business outcomes, including reduced chargebacks, fewer manual reviews, and reduced false positives. Kount also offers Datamart, self-service business analytics, to give in-depth insights and allow customers to conduct investigations and proactively use data in other efforts.
Kount is highly customizable and allows customers to fully manage their own fraud prevention decisions and outcomes, or use Kount’s Professional and Guarantee Services to be as hands-on or off as desired. Kount also offers friendly fraud prevention solutions, advanced bot detection, account takeover prevention via Kount Control, Data on Demand, and solutions to comply with 3DS2 and PSD2.
Riskified
Merchant Profile – Enterprise
Automated Workflow – yes
Machine Learning – yes
Insights Dashboard – yes
Device Fingerprinting – yes
Chargeback Guarantee – yes
Supported Platforms – Shopify, Magento, CommerceCloud
Customization – yes
Pricing – depends on your transaction volume
Free Plan – no
Free Trial – no
Riskified provides merchants with real-time insights by using cutting-edge machine learning algorithms. Their machine learning models deliver instant decisions which allow you to streamline good shoppers’ journey and prevent e-commerce fraud attacks. Riskified has a full suite of conversion-oriented products that help to recapture good revenue and prevent losses at every stage of the online path to purchase.
This platform uses a wide range of analytical methods particularly geo-location & IP, social media, proxy detection, device & browser fingerprinting, order linking, and more. Riskified gives a clear approve/decline answer on all transactions instead of risk scores and flags. This allows you to decide which transactions to review. Riskified charges merchants only for the transactions that are approved and generate sales.
Forter
Merchant Profile – Enterprise
Automated Workflow – yes
Machine Learning – yes
Insights Dashboard – yes
Device Fingerprinting – yes
Chargeback Guarantee – yes
Supported Platforms – Magento
Customization – yes
Pricing – available on request
Free Plan – no
Free Trial – no
Forter uses a database of 175 million identities to differentiate fraudsters from customers, and has a fully automated system that works in real time to provide an instant “yes/no” response to every transaction.
The platform allows you to personalize the experience as you can tailor their machine learning profile to your risk profiles, along with a dashboard that gives merchants insights into behavioral data, geo-location, and payment details.
Several additional fraud controls are also available, including phone order protection and alternative payments.
Signifyd
Merchant Profile – SMB, Large
Automated Workflow – yes
Machine Learning – yes
Insights Dashboard – yes
Device Fingerprinting – yes
Chargeback Guarantee – yes
Supported Platforms – Magento, Shopify, BigCommerce, CommerceCloud
Customization – yes
Pricing – starting at 1% of your orders
Free Plan – yes
Free Trial – yes (14 days)
Signifyd prides itself on minimizing the amount of friction fraud prevention ads into merchants’ sales pipelines, and offers the ability to entirely automate the order fulfillment process. It integrates with major eCommerce platforms including Magento, Shopify, and BigCommerce.
There are two plans offered: On-demand Assurance and Complete Assurance. Both come with a 100% chargeback guarantee.
On-demand allows merchants to manage fraud themselves and only ask for help with necessary. Once requested, a certified fraud expert is assigned to help with evaluating the order and making the decision to decline or accept it.
Complete Assurance allows merchants to entirely outsource their fraud prevention. Signifyd takes over the evaluation of all orders and will make the decision about whether to accept or decline entirely on its own.
Signifyd claims to reduce the frequency of manual reviews by as much as 80%.
ClearSale
Merchant Profile – SMB, Large
Automated Workflow – yes
Machine Learning – yes
Insights Dashboard – yes
Device Fingerprinting – yes
Chargeback Guarantee – yes
Supported Platforms – Magento, BigCommerce, Vtex, PrestaShop, WooCommerce, 3D Cart, Zoey
Customization – yes
Pricing – depends on your sales volume
Free Plan – yes
Free Trial – yes (30 days)
ClearSale offers API integrations and plugins with all major eCommerce platforms to monitor shopper behavior in real-time.
When shoppers arrive at a merchant’s store, the platform monitors how the use the site to look for browsing patterns known to be fraudulent (such as going straight for high cost items and then immediately to check out). This information is combined with external data sources before being analyzed by artificial intelligence algorithms to determine if the order is fraudulent.
If the AI determines the order may be fraud, it is sent to a team of human manual review experts to confirm the findings of the software. In some cases, these experts will even reach out to the shopper using their contact information to confirm or deny if they are fraudsters.
This system allows ClearSale to keep chargebacks down while also avoiding high instances of false positive declines.
CyberSource
Merchant Profile – Large, Enterprise
Automated Workflow – yes
Machine Learning – yes
Insights Dashboard – yes
Device Fingerprinting – yes
Chargeback Guarantee – no
Supported Platforms – Magento, Bigcommerce
Customization – yes
Pricing – quote based plan
Free Plan – no
Free Trial – no
CyberSource is built on the intelligence from over 68 billion transactions that CyberSource and credit card company Visa process annually worldwide. The platform comes with proprietary machine learning methods along with a flexible rules engine that can be quickly customized via a web portal that works with all the major eCommerce platforms and doesn’t require any specialized IT support to set up.
Merchants can also take advantage of 14 risk models tailored by region, industry, and channel, and use the platform to automatically halt fulfillment of an order when a fraudster is identified.
CyberSource also allows merchants to test their historical rules-based fraud prevention data against various “what-if” scenarios, so they can continue to improve without the risk of a chargeback.
Feedzai
Merchant Profile – Large, Enterprise
Automated Workflow – yes
Machine Learning – yes
Insights Dashboard – yes
Device Fingerprinting – yes
Chargeback Guarantee – no
Supported Platforms – Magento
Customization – yes
Pricing – available on request
Free Plan – no
Free Trial – no
Feedzai is an end-to-end solution that offers risk scoring and data orchestration using rules and machine learning, as well as case management tools to help merchants prevent fraud. The platform ensures customers’ buying experiences remain positive, even while stopping fraud across multiple use cases such as launch abuse and transaction monitoring. Their 360 degree customer view also allows merchants to understand the behavior patterns of their customers by processing information through every channel and source.
Feedzai can also help businesses adapt to new types of fraud with a risk engine that meets compliance standards such as a Two-Factor Authentication (2FA), and offer intuitive reports that help merchants understand patterns of fraud with real-time insights.
Ravelin
Merchant Profile – SMB, Large
Automated Workflow – yes
Machine Learning – yes
Insights Dashboard – yes
Device Fingerprinting – yes
Chargeback Guarantee – yes
Supported Platforms – Magento
Customization – yes
Pricing – starting at $1,300 per month
Free Plan – no
Free Trial – yes
Ravelin offers merchants the ability to set their own rules-based fraud prevention systems, and then have them executed in combination with machine learning algorithms. Orders are reviewed in as little as 800 milliseconds, and then return recommendations that can be reviewed by a merchant’s manual fraud review team.
The platform also allows merchants’ manual review teams to provide feedback to the algorithm, allowing for a symbiotic relationship where each can learn from the other continuously over time. In addition, order reviews are presented in a highly visualized dashboard that makes it easy for merchants to see the sales happening within a short time frame, so they can detect fraudulent shoppers who are part of a fraudster network right away.
Sift
Merchant Profile – Large, Enterprise
Automated Workflow – yes
Machine Learning – yes
Insights Dashboard – yes
Device Fingerprinting – yes
Chargeback Guarantee – no
Supported Platforms – WooCommerce, Shopify, Magento
Customization – yes
Pricing – starting at 0.06 per order
Free Plan – yes
Free Trial – yes (30 days)
Sift (formally Sift Science) is an automated fraud prevention and detection software powered by a cloud-based machine learning platform so your customers can enjoy their shopping experience with no worries about their information being stolen or account breached. The platform analyzes more than 16,000 fraud signals that are updated in real time from activities and events to give you an enterprise-grade security platform capable of handling the demands of any business or organization.
This solution presents you with the full narrative of fraudulent activities through raw data access, data visualizations, and suspicious signals, and offers a range of features such as IP address analysis, device ID fingerprinting, and social data analysis to enable merchants to both protect their customers and detect and combat fraud against their business.
Fraud.Net
Merchant Profile – Large, Enterprise
Automated Workflow – Yes
Machine Learning – Yes
Insights Dashboard – Yes
Device Fingerprinting – Yes
Chargeback Guarantee – No
Customization – Yes
Pricing – Available on request
Free Trial –Yes
Fraud.net is a leader in AI-powered enterprise fraud prevention. Its award-winning fraud detection platform helps digital businesses quickly identify transactional anomalies and pinpoint fraud using artificial intelligence, big data, and live-streaming visualizations. Fraud.net’s platform was designed to combat hard-to-detect fraud at digital enterprises in the e-commerce, travel, and financial services sectors. Its unified algorithmic architecture combines: 1) cognitive computing/deep learning, 2) collective intelligence, 3) rules-based decision engines, and 4) streaming analytics to detect fraud in real-time, at scale.
Fraud.net’s cloud-based “glass-box” system, offers a full and transparent presentation of the data, statistics, and contextual variables to help organizations simplify their fraud management, defending against different types of fraud through one unified solution.
Fraud.net is the only fraud prevention platform offering Enterprise capabilities not only for AI-powered fraud detection, but also for Enterprise Case Management and Advanced Analytics.
Nethone
Merchant Profile – LMB
Automated Workflow – yes
Machine Learning – yes
Insights Dashboard – yes
Device Fingerprinting – yes
Chargeback Guarantee – no
Supported Platforms – N/A
Customization – yes
Pricing – depending on volume
Free Plan – no
Free Trial – no
Nethone is a relatively new player in the industry. Their fraud solution profiles focuses on three distinct industries; eCommerce, Travel and Digital Lending. Nethone strengths lay in its highly customizable platform that allows merchants to effectively create their own unique fraud prevention profile. This is done through a robust API and leverages Nethone’s effective Machine Learning technologies.
Merchants are able to essentially almost build a solution that fits their risk profile and specific needs. A highly attractive offering for merchants with unique platform or checkout workflows. The company boasts a light integration for merchants instead relaying on their API framework to do the heavy lifting.
Nethone’s solution relies heavily on behavioural analytics to profile users on the merchant site, detecting fraudulent behaviour and providing business intelligence insights. Data is collected via various signals ranging from historical databases from the merchants through user’s interactions within their website.
Precognitive
Merchant Profile – SMB
Automated Workflow – yes
Machine Learning – yes
Insights Dashboard – yes
Device Fingerprinting – yes
Chargeback Guarantee – no
Supported Platforms – N/A
Customization – limited
Pricing – depending on solution
Free Plan – no
Free Trial – no
Another relatively newcomer to the industry Precognitive heavily utilizes Machine Learning technologies to provide a preventative and proactive approach to fraud prevention (as opposed to a reactive approach by other fraud prevention vendors profiled above).
By focusing on fraudulent account creation and takeovers, Precognitive claims to reduce chargebacks and fraud by up 67% and ATO attacks by as much as 85%. In addition, Precognitive claims a 6% lift in eCommerce sales.
Precognitive also focuses on certain industries in addition to eCommerce such as Banking and the Travel sector. Much of its technologies is built around behavioural analytics, device fingerprinting and a decisioning engine to determine which user is a fraudster and which user is legitimate.
SEON
Merchant Profile – LMB
Automated Workflow – yes
Machine Learning – yes
Insights Dashboard – yes
Device Fingerprinting – yes
Chargeback Guarantee – no
Supported Platforms – N/A
Customization – extensive
Pricing – API request based starting at €0.02 depending on type of usage
Free Plan – no
Free Trial – 30 Days
SEON is a European based fraud prevention platform with a robust technology profile. SEON boasts over 4000 customers ranging from Avis, Air France and Eurobet. Seon’s platform is interesting in that it is highly flexible and customizable depending on the usage. This allows SEON to operate in a multitude of industries such as; Banking, Gaming, Lending, eCommerce, Travel and Payment Gateways.
It’s flexible pricing models charges users based on calls to its API and the price per call varies. For example a call for the Payments API costs €0.06 / request while a Login API call costs €0.02 / request (rates also vary by overall monthly volume and decrease as volume increases). This gives merchants and other users highly customizable and cost-effective usage. Merchants are able to leverage the automated, machine-driven workflow with flexible features to fit the way they do business.
SEON approach to integrating their ‘Sense Platform and Intelligence Tools’ allows them to work in completely different merchant profiles. For example a traditional eCommerce merchant versus an online gambling platform.
FraudLabs Pro
Merchant Profile – SMB, Large, Enterprise
Automated Workflow – yes
Machine Learning – yes
Insights Dashboard – yes
Device Fingerprinting – yes
Chargeback Guarantee – no
Supported Platforms – WHMCS, OpenCart, Shopify, Magento, PrestaShop, WooCommerce, BigCommerce, AbanteCart, CS-Cart, CubeCart, LiteCart, MiwoShop, osCommerce, WP E-Commerce, VirtueMart, ZenCart, PinnacleCart, Arastta, FoxyCart, Easy Digital Downloads, nopCommerce and Ecwid.
Customization – yes
Pricing – plan based
Free Plan – yes
Free Trial – no
FraudLabs Pro helps merchants to protect their online e-commerce stores from transaction frauds to reduce chargebacks and loss of goods. Our fraud detection engine inspects and validates orders through all aspects derived from the order information. Together with the blacklist data in our global merchants network, it will detect fraud orders accurately and minimize the false-positive.
FraudLabs Pro offers merchants the ability to customize their own fraud validation rules depending on their business needs. It offers merchants hundreds of validation rules to choose from.
FraudLabs Pro has more than 20 ready-made plugins covering most of the major e-commerce platforms, such as Shopify, BigCommerce, Magento, WooCommerce, WHMCS, OpenCart and so on. Our solution is future-proof, users have no hassle to switch their e-commerce platform in the future easily.
NoFraud
Merchant Profile – SMBs, Large, Enterprise
Automated Workflow – yes
Machine Learning – yes
Insights Dashboard – yes
Device Fingerprinting – yes
Chargeback Guarantee – yes
Supported Platforms – Magento, Shopify, Shopify Plus, BigCommerce, WooCommerce SalesForce Commerce Cloud, Shift4Shop, Volusion, Yahoo, PinnacleCart, PrestaShop
Customization – yes
Pricing – available on request
Free Plan – no
Free Trial – yes
NoFraud is an eCommerce fraud prevention and checkout solution that protects businesses from fraudsters, eliminates chargeback losses, and provides smoother, more frictionless checkout experiences for trusted shoppers.
NoFraud integrates directly with your eCommerce platform to scan every order for signs of fraud in real-time. We use a combination of powerful AI and proactive human review to provide a simple pass or fail decision for every transaction, so you never need to manually review orders or monitor fraud scores. NoFraud is so confident in their decision-making that they provide a 100% financial guarantee, so if you receive a fraud chargeback, they’ll pay you back.
With NoFraud Checkout, you can improve conversions with a beautifully designed checkout experience built to put trustworthy shoppers on the fast track to purchase. Any shopper recognized in the NoFraud network can autofill their information with one click—no tedious account registration required. For everyone else, NoFraud Checkout dynamically adapts the number of input fields based on customer risk factors. More trustworthy shoppers are sped through, while riskier shoppers must provide more information before checking out.
F5
Merchant Profile – SMBs, Large, Enterprise
Automated Workflow – Yes
Machine Learning – Yes
Insights Dashboard – Yes
Device Fingerprinting – Yes
Chargeback Guarantee – No
Supported Platforms – F5 BIG-IP, F5 Distributed Cloud (XC) Web Application & API Protection (WAAP), F5 NGINX, Adobe Commerce (Magento), Amazon CloudFront Connector, Cloudflare, Salesforce Commerce Cloud, Splunk
Customization – Yes
Pricing – Available on request
Free Plan – No
Free Trial – No
