10 Best Fraud Detection Software for eCommerce

Among the big and giant businesses dealing in eCommerce, credit card fraud, account takeover, friendly fraud, and bots are some of the common frauds that pose a huge threat to businesses in this dynamic world of eCommerce. Fraud Prevention Software plays a crucial role in mitigating these risks by identifying and stopping fraudulent activities in real-time.

Online merchants face attacks from hackers that have severe impacts on the revenue and reputation of businesses. Here is where sophisticated software emerges as a critical tool to help defeat those challenges. This article discusses the top 10 Fraud Detection Software for eCommerce, with key features and benefits.

What are the Main Features Fraud Detection Software Offers

The new fraud detection software has many features that detect and prevent fraudulent activities. The most commonly used features are as follows:

• Real-time Transaction Monitoring: Real-time analysis of transactions to spot suspicious patterns and tag potentially fraudulent orders.
• Device Fingerprinting: Identification of special device characteristics to detect and block bot attacks along with account takeovers.
• AVS and CVV Checks: Verify billing and shipping addresses versus the information of the cardholder.
• Machine Learning Algorithms: This would use complicated and advanced algorithms of machines that would identify advanced fraud patterns, changing threats, and changing methods of forming defence.
• Behavioral Analytics: The analysis of customers’ behaviour using history, purchase history, browsing history, and device usage history.
• Identity Verification: Verification of the identity of customers by checking IDs, phone verification, and email verification.
• Chargeback Management: Help to resolve chargebacks and provide a solution for loss reduction in the case of potential chargeback
• Integration with e-Commerce Systems: Easy integrations with popular e-commerce systems, like Shopify, Magento, or WooCommerce.
• Report and Analytics: Generate detailed reports and analytics on fraud trends to help businesses search for the valuable insights they gather in the continued fraud prevention campaign.

Benefits of using Fraud Detection Software

Implementing advanced fraud detection tools for eCommerce benefits the eCommerce business in multiple ways. It consists of

• Chargeback decrease: The appropriate detection and protection against fraudulent activities reduce chargebacks, and this decreases revenue loss.
• Customer satisfaction: False declines’ minimisation and smooth secure checkout experience help boost customer satisfaction and loyalty.
• Revenue: Prevention of fraud and reduced operational costs in terms of managing fraud boosts the bottom line.
• Improved Brand Reputation: The safety provided to customers and a fraud-free online environment are sources of trust, thereby building the reputation of the brand.
• Increased Operational Efficiency: Automation helps free up some time and resources for other priorities in the business.
• Compliance with Industry Regulations: Maintaining compliance with industry regulations, such as PCI DSS, reduces fines and penalties.

Comparison Table

10 Best Fraud Detection Software for eCommerce

Here is a list of fraud detection software; read more to get complete information about this software:

 1. CertifID, Inc.

• Rating: 4.8/5
• Best for: Real-time wire fraud prevention and identity verification

CertifID is at the forefront of fraud prevention, specializing in real-time wire fraud prevention and identity verification for eCommerce businesses. Leveraging advanced machine learning algorithms and biometric verification ensures safe transactions and prevents fraud attempts. With its robust system, CertifID stands out as a leader in AI-driven fraud detection, offering innovative solutions to tackle evolving threats.

Additionally, CertifID provides comprehensive protection, capable of processing thousands of transactions per second with an accuracy above 99.9%, making it a trusted choice for secure online operations. Its ability to detect synthetic identities effectively prevents account takeovers, making it an excellent solution for high-value transactions.

As a native to blockchain verification protocols, CertifID positions itself as a top choice among fraud prevention services.

Key Features: 

• Live wire fraud
• Multi-factor authentication
• Biometric-based authentication
• Machine learning-based risk scoring
• Blockchain integration
• API-first architecture

Pros:

• Accurate detection  of fraud
• Real-time monitoring and alerts
• Ease in usage
• Good customer support
• Frequent updates on security ends

Cons:

• More expensive plan
• Complicated integration process
• Less customisation

Pricing:

Custom Pricing

2. Riskified

• Rating: 4.7/5
• Best for: Enterprise-level eCommerce fraud prevention

Riskified has become a full fraud detection software for eCommerce that merges the power of advanced AI with vast eCommerce experience. Their platform makes accurate approve/decline decisions within milliseconds by analysing hundreds of data points, resulting in a highly reduced false-positive rate while still maintaining strong fraud prevention.

It adapts in real-time to new fraud patterns and provides in-depth insights into transaction patterns and customer behaviour. Particularly for global eCommerce businesses, Riskified has added more emphasis towards mobile commerce security and cross-border transaction verification. In addition, the service caters specifically towards the needs of selling digital products and subscription services.

Key Features:

• Chargeback guarantee
• Machine learning fraud detection
• Account protection
• Policy abuse prevention
• Dynamic checkout optimisation
• Cross-border transaction analysis

Pros:

• Chargeback protection
• High approval rates
• Excellent integration
• Top-notch reporting tools
• 24/7 customer support

Cons:

• Premium pricing
• Requires minimum in terms of transaction volume
• Limited flexibility in decision rules

Pricing:

Custom Pricing

3. Kount Inc.

• Rating: 4.7/5
• Best for: Small to medium-sized businesses

Kount Inc. has solidified its position with its Identity Trust Global Network handling billions of transactions every year. Their platform is ahead of the game when it comes to adaptive AI-powered fraud prevention-a subtle balance between safety and customer experience. The platform uses both supervised and unsupervised machine learning as it identifies emerging patterns of fraud.

It is one of the best fraud detection software for eCommerce. Kount’s solution serves well in terms of finding card-not-present fraud and account takeover attempts with little false positives. More to it, advanced device fingerprinting and behavioural analytics are also offered by the software.

Its capabilities extend to tackling card-not-present fraud and account takeover attempts, with minimal false positives. Additionally, Kount offers advanced device fingerprinting and behavioural analytics, making it a standout in fraud protection solutions and a reliable choice for businesses looking to secure their operations.

Key Features: 

• AI-based fraud prevention
• Device fingerprinting
• Behavioural analytics
• E-commerce Payment protection
• Custom rules engine
• Global transaction monitoring

Pros:

• Scalable solution
• Fast deployment
• Extensive reporting
• Flexible pricing options
• Reputation within the industry 

Cons:

• The steep learning curve for more complex features
• Limited integrations with third-party applications
• The basic plan lacks advanced features

Pricing:

Custom Pricing

4. Sift

• Rating: 4.6/5
• Best for: Digital-first companies

Sift is one of the leading Digital Trust & Safety providers, based on its extensive data collection across the world, thus delivering accurate fraud detection. Machine learning models on this platform are constantly adapting to fraud patterns.

The platform will find its value the most among businesses in fast-changing digital settings. Sift tries to prevent as much fraud from occurring as is humanly possible by combining hundreds of signals via sophisticated risk-scoring mechanisms and striking a great balance between security and user experience. Their platform has a certain flair for knowing about complex rings and coordinated attacks and provides details about user behaviour patterns.

Key Features:

• Real-time Machine Learning
• Global Data Network
• Workflows
• Account Defence
• Payments Protection
• Content Integrity
• Advanced ML capabilities

Pros:

• Great API documentation.
• Very strong Feature set
• Real-time monitoring
• Flexible integration

Cons:

• Odd pricing
• Not very user-friendly
• Needs technical skill

Pricing:

Custom Pricing

5. ClearScale

• Rating: 4.6/5
• Best for: Custom fraud prevention service

ClearScale offers very customisable solutions that are uniquely tailored to fit business needs. Its system natively integrates leading-edge AI capabilities and more rule-based systems in one fraud protection initiative. The software performs very well at finding patterns with thousands of data points, including a history of transactions, devices, and user behaviour.

ClearScale recently implemented quantum-resistant encryption algorithms, and the company is seeking organisations that would experience a change in the positive direction of eCommerce security breaches threats. The adaptive learning system is constantly updated with new data so that effectiveness in detecting issues will improve.

Key Features:

• Integrate into existing fraud detection services
• Develop proprietary fraud detection solutions
• Security and infrastructure support seamlessly on AWS
• Machine Learning capabilities
• Integration with Other Services

Pros:

• Mention the utilisation of your skills through AWS
• Scalability and cost-effectiveness
• Optimal performance and security of fraud detection

Cons:

• Does not result in a specific fraud detection software product
• Implement and manage fraud detection solutions
• Requires expertise in AWS

Pricing:

Custom Pricing

6. Fraudhunt

• Rating: 4.5/5
• Best for: Mid Market eCommerce companies

Fraudhunt has revolutionised fraud detection by providing a novel approach to behavioural analytics and pattern recognition. The company uses deep neural networks and deep learning algorithms to analyse customers’ behaviour across many touchpoints and create comprehensive risk profiles in real time.

Their system excels in identifying complex fraud attempts that certain rule-based systems may miss. Fraudhunt has been enhanced by the introduction of its new predictive analytics engine.

It is able to identify emerging fraud patterns before they can spread and become major threats. In addition, it has modules for different industry verticals, making it very adaptable to the needs of any business.

Key Features:

• Behavioural analytics engine
• Neural network processing
• Predictive risk scoring
• Industry-specific modules
• Multi-channel monitoring
• Automated review workflows

Pros:

• Easy-to-use interface
• Fast deployment
• Affordable price
• Robust mobile fraud detection
• Regular updates of features

Cons:

• Less analysing historical data
• The repotting tool is a basic
• Regional support is not so developed

Pricing:

Custom Pricing 

7. Feedzai

• Rating: 4.5/5
• Best for: Massive financial operations

Feedzai is the one powerhouse in preventing financial crime, given its sophisticated RiskOps platform. It makes use of quantum-inspired algorithms and hyper-dimensional computing, processing tremendous volumes of data within milliseconds. Its system also makes use of advanced biometric authentication and behavioural analysis to form a complete fraud prevention ecosystem.

Feedzai is different for the reason that its system can simultaneously spot and prevent channel-agnostic fraud with extremely low false-positive rates. Another recent advancement it has developed of its autonomous decision engine, which has built on the existing capacity of this platform to help in handling quite complex fraud conditions.

Key Feature:

• RiskOps platform
• Quantum-inspired processing
• Omnichannel monitoring
• Advanced biometrics
• Autonomous decision engine
• Real-time scoring

Pros: 

• Processing speed is top-notch
• Acute accuracy rating
• Analytics full-scale
• Security enterprise-grade
• Multiple integration options 

Cons:

• Implementation cost expensive
• Complex setup process
• Dedicated technical team

Pricing:

Custom Pricing

8. Forter

• Rating: 4.4/5
• Best for: Global eCommerce networks

Forter has differentiated itself as a completely automated fraud prevention platform that uses one of the largest transaction databases in the industry. Their system leverages creative identity resolution technology to enrich user profiles across several touchpoints and devices, creating rich user profiles. What gives the platform a backbone is the immediate, always correct decision that does not compromise the customer experience.

Forter recently adopted federated learning, which allows the system to learn to better detect fraud without compromising user privacy. Its ability to detect really good customers behaving poorly leaves behind poor declines and reduces false declines highly.

Key Features:

• Automated decision engine
• Identity resolution
• Privacy-preserving learning
• Policy abuse prevention
• Return abuse protection
• Account protection

Pros:

• Fully automated decisions
• Wide network of data
• Has a privacy-oriented approach
• Has a strong customer success team
• Updates of models are done periodically

Cons:

• The price is higher
• It has limited customisation
• Minimum amount of transaction

Pricing:

Custom Pricing

9. CyberSource

• Rating: 4.4/5
• Best for: Multi-channel retailers

CyberSource is a solution offering business enterprise-grade fraud protection to businesses of all sizes. The company offers a full platform for transaction screening, integrating sophisticated AI capabilities with traditional rule-based systems. Using information from billions of annual transactions through the Visa network, its Decision Manager helps recognise and block attempts at fraud.

It is an amazing fraud detection software for eCommerce. CyberSource further expanded its dominance within the market over the past few years by implementing sophisticated device fingerprinting and behavioural biometrics. The network is of great value to businesses operating multi-channel and international businesses.

Key Features:

• Decision Manager
• Global data visibility
• Device fingerprinting
• Behavioural biometrics
• Rule optimisation
• Payer Authentication

Pros:

• Visa Network Integration
• Thorough reporting systems
• Versatile deployment
• Excellence on compliance
• Availability of a comprehensive support network.

Cons:

• Complexity associated with the pricing model
• Has a high learning curve
• Integration complexity

Pricing:

Custom Pricing

10. TruValidate

• Rating: 4.3/5
• Best for: Identity verification and fraud prevention

TruValidate has emerged as an all-inclusive solution that offers both identity verification with fraud prevention. The service uses the power of document verification technology integrated with biometric authentication for robust identity verification at the time of a transaction. In addition, the system also utilises consortium data from other industries to identify fraud in better ways.

Recently, TruValidate started using the concept of artificial intelligence to verify and improve its abilities regarding documents to identify hard, complex approaches to identity theft attempts. They provide industry-specific solutions for individual types of sectors to make this technology highly workable for them as per individual business requirements.

Key Features:

• Document Verification
• Biometric verification
• Consortium data Access
• Industry-oriented Solutions

Pros:

• Synthetic ID check
• Identity-proofing
• Positive security updates about each of them at regular times.

Cons:

• Limited customisation options
• Higher cost per verification
• Regional coverage variations

Pricing:

Custom Pricing

Conclusion

At present in the eCommerce world, strong fraud detection software for eCommerce is no longer a nicety but a must for survival. With the right solution, business enterprises can successfully avert the prevalent risks tied to fraud, better safeguard their revenue, offer a more excellent experience to customers, and place themselves in the best position for sustainable growth. The top fraud prevention software listed in this article will definitely help you to make the best choice.

FAQ

What are some of the features of fraud detection software?

Real-time transaction monitoring, device fingerprinting, AVS/CVV checks, machine learning, behavioural analytics, and identity verification.

Benefits of fraud detection software

Decreased chargebacks, improved customer experience, increased revenue, and positive brand reputation.

Some of the best fraud detection software providers

Kount, ClearSale, Arkose Labs, SEON, Forter, Bolt, Unit21, Riskified, DataDome, Midigator

Why is fraud detection important for e-commerce companies?

Protects revenue, enhances customer experience, follows the law, and provides a safe space on the internet.