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Fraud Detection Software

Fraud Detection Software

Who Can You Trust? Here’s the 10 Best Fraud Detection Software Companies of the Year

The best solution for preventing fraud is to combine fraud detection software tools with dedicated fraud prevention services. Where do you start, though?

How do you start? And, most importantly, how do you choose which services are right for your business?

In this article, we’re running down the top 10 fraud solution providers of 2022. We’ll weigh the strengths and weaknesses of each and give you some basic information to help you simplify the decision-making process.

The “Must-Have” Features for Fraud Detection Software

Your payment processor can provide you with some fraud tools to help your business detect and respond to fraud. However, not every self-installed tool works to cover every type of fraud. They also do not typically offer any additional protection against chargebacks or friendly fraud. A fraud detection software provider can help you monitor and manage incoming transactions for suspicious activity while avoiding unnecessary declines due to false positives.

Of course, stopping fraud attacks is the essential baseline indicator as to whether a fraud detection platform works. However, the features that the platform offers are key to this goal. No fraud detection software platform is going to be complete without:

Fraud Scoring

Fraud scoring examines each transaction based on dozens of indicators, then assigns a simple numeric score representing the transaction's risk level. This allows for simple “up-or-down” decisioning to accept or reject a purchase.

Machine Learning

This technology compares incoming information to historical data prior to approving a transaction. It uses sophisticated algorithms to analyze results and “learn” from new inputs, making for more accurate decisions over time.

Real-Time Monitoring

An advanced fraud tool that actively monitors and responds to payments. Many service providers offer this in combination with automated ID verification to approve or deny transactions based on risk scores.

In-Depth Reporting

You need ongoing feedback with reliable, useful key performance indicators (KPIs). Reporting is critical to understanding what works, what doesn’t work, and where you can optimize processes and eliminate errors.

Customizable Rulesets

No two businesses are alike. Good fraud prevention software will let merchants create rulesets for approving or rejecting orders based on parameters that are tailored to the business’s unique needs.

Fraud Detection Software

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Of course, these tools demand careful consideration. Mistargeted fraud detection software will mean rejecting legitimate orders while letting fraud go unchallenged.

We encourage you to understand which solutions are out there in order to maximize their benefits. Knowing which fraud tools work best with your business can also help you choose the right fraud software service provider.

So, with all that in mind, let’s look at the best fraud detection service providers on the market today to get a better idea of your options.

The Top 10 Best Fraud Detection Service Providers

We took a detailed look at the highest-rated fraud prevention companies in operation today, and developed a comprehensive rundown of the leading service providers.

Ratings and reviews were averaged based on sources including G2, TrustRadius, Software Suggest, and Gartner. The “pros” and “cons” we mention are paraphrased directly from real, firsthand customer reviews.

Signifyd

#1 | Signifyd

G2 ranks Signifyd as the #1 eCommerce fraud protection service available.

Signifyd provides an end‑to‑end Commerce Protection Platform. This platform leverages their Commerce Network to maximize conversion, automate customer experience, and eliminate fraud and customer abuse for retailers.

Signifyd uses big data and machine learning to provide a 100% financial guarantee against fraud and chargebacks on approved orders. This effectively shifts the liability for fraud away from eCommerce merchants, allowing them to increase sales and open new markets while reducing risk.

Major Clients:

Pros:

  • Integrates seamlessly and is easy to use
  • The Payments Optimization module works with strong customer authentication (SCA), which helps with compliance for EU-based payments
  • Transactions are generally approved in seconds

Cons:

  • It can be very costly for an enterprise-type customer
  • No real-time data
  • Sometimes the human (non-automated) review process can take longer to complete in cases where additional verifying information is needed from the customer

Pricing: Call for a free quote.

Extra Perks:


Fraud Detection Software

#2 | Arkose Labs

Arkose Labs’s fraud deterrence platform eliminates sophisticated bots, frustrates fraudsters, and delivers user-centric account security. Combining real-time risk classification with dynamic challenges, the AI-powered platform uses enterprise-grade CAPTCHAs to defeat persistent bot and fraud farm attacks and protect platforms from account takeovers, fake account creation, spam, scraping, and more.

Major Clients:

Pros:

  • Easy to integrate with existing websites and workflows
  • Constantly improving their product, adding new challenges, monitoring traffic, and suggesting additional integration strategies
  • Tailors enforcement mechanisms to specific needs

Cons:

  • Lacks an API endpoint that provides real-time monitoring and the capability to configure alerts
  • Pricey; not ideal for start up companies seeking immediate ROI
  • Requires front-end integration

Pricing: Call for a free quote.

Extra Perks:

  • Free Demo

Fraud Detection Software

#3 | NoFraud

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 eCommerce platforms to scan every order for signs of fraud in real-time. They use a combination of powerful algorithms and proactive human review to provide simple pass-or-fail decisions for every transaction. Their aim is to eliminate the need to manually review orders or monitor fraud scores, and provide a 100% financial guarantee for chargebacks.

NoFraud Checkout also 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.

Major Clients:

Pros:

  • Seamless integration; easy to use and navigate
  • Excellent customer service and tech support
  • Decreases chargebacks

Cons:

  • Software is extremely sensitive; flags some orders needlessly
  • The integration ranks at the higher end of the pricing scale
  • They only cover purchases up to $2,000, but will increase the limit (for an additional fee)

Pricing: Call for a free quote

Extra Perks:

  • APIs
  • Free Demo

Fraud Detection Software

#4 | DataDome

DataDome protects mobile apps, websites and APIs from online fraud, including scraping, scalping, credential stuffing, and account takeover.

They also protect against layer 7 DDoS attacks and carding fraud. Their AI-powered bot detection engine processes more than one trillion pieces of data every day, from 25 worldwide points of presence. This helps protect some of the world’s largest global eCommerce businesses in real time.

DataDome is easily deployed and is compatible with 100% of web infrastructure technologies, thanks to strong technical and business partnerships with market leaders. It runs anywhere, in any cloud, and is compatible with multi-cloud and multi-CDN setups.

Major Clients:

Pros:

  • Seamless, instinctual interface without a lot of noise
  • Customizable rulesets with excellent onboarding
  • Provides SDK (software development kit) integrations that simplify coding obfuscations and coupling challenges

Cons:

  • No ‘out of box’ API augmentation (manages internal systems only)
  • Software is sensitive; can lead to false negatives
  • No APIs with intro platform

Pricing: Entry level price of $2,990

Extra Perks:

  • Free Quote

Fraud Detection Software

#5 | Seon

SEON helps its customers uncover fraud patterns and generate new revenue streams. Intelligent risk scoring with AI and machine learning adapts to your business risk evaluation. This means you get full visibility and complete control over every interaction, order, account, transaction, and opportunity.

Major Clients:

Pros:

  • Seamless integration with a wide range of data points
  • Detailed IP geolocation checks, screening of personal data for fraudulent indicators, checks social media profiles, and the rules management system is quite easy to use without specific knowledge
  • Platform is extremely well organized

Cons:

  • Lacks the means to export a full blacklist or internal scoring data points
  • Loading customers into the system can take a while
  • IP checks could be more precise with mobile IPs

Pricing: Starting at €299

Extra Perks:

  • APIs
  • Free Demo

Fraud Detection Software

#6 | Riskified

Riskified uses powerful machine-learning algorithms to instantly recognize good customers and weed out bad ones with a 100% chargeback guarantee. Merchants can safely approve more orders, expand internationally, and eliminate the costs of fraud while providing a frictionless customer experience.

Major Clients:

Pros:

  • It's easy to filter through thousands of orders to identify general trends
  • Obtain quick responses and solutions when submitting claims and reimbursements
  • The effectiveness of the product; does not require heavy maintenance

Cons:

  • Sometimes people are flagged for no reason
  • Focusing purely on fraud prevention means merchants in the EU need to handle 3DS/PSD2 on their own
  • There are no mobile SDKs, yet more than 50% of eCommerce is mobile in some countries

Pricing: Call for a free quote

Extra Perks:

  • APIs
  • Chargeback Guarantee
  • Real-Time Monitoring

Fraud Detection Software

#7 | Sift

Sift, formerly Sift Science, empowers companies of all sizes to unlock revenue without risk. Industry leaders like Twitter, DoorDash, and Twilio rely on Sift to stay competitive and secure.

Sift prevents fraud with industry-leading technology and expertise, an unrivaled global data network, and a commitment to building long-term partnerships with our customers.

Their Digital Trust & Safety Suite prevents fraudulent payments, fake accounts, spam, scams, and account takeover. They reduce false positives and power frictionless experiences in the process.

Major Clients:

Pros:

  • Easy to use and provides excellent visibility about any suspicious behavior
  • Automate workflows are very flexible and easy to understand
  • Straightforward integration

Cons:

  • Route building and initial configuration of workflows could be improved
  • Does not always accurately link accounts
  • Product is priced relatively high

Pricing: Volume based pricing. Call for a free quote

Extra Perks:

  • APIs
  • Free Quote
  • Real-Time Monitoring

Fraud Detection Software

#8 | Kount

Kount’s AI-driven Identity Trust Platform protects the complete customer journey for more than 9,000 leading brands and payment processors.

Powered by its Identity Trust Global Network ™, Kount, An Equifax Company, links billions of trust and fraud signals to protect every interaction. It provides end-to-end coverage from account creation and login to payments and disputes.

Major Clients:

Pros:

  • Kount RIS API is very clear, concise, and easy to implement
  • The approve/decline model has proven to be a seamless experience
  • Also checks a customer’s chargeback history

Cons:

  • Many different clients and customers are automatically flagged with a low Omniscore
  • Decline rules are very limited
  • Datamart BI reporting tool is not optimized, and limited

Pricing: Two-tier pricing based on small business and mid-market models

Extra Perks:

  • APIs
  • Real-Time Monitoring
  • Payment Verification

Fraud Detection Software

#9 | ClearSale

ClearSale’s balanced approach to eCommerce fraud protection and prevention yields the highest approval rates and lowest false-positive rates in the industry.

Having been in business for over two decades and running, and with a 99% retention rate, that’s really saying something.

ClearSale does business in over 160 countries. They’ve won several awards for stellar customer service and proven value as a top fraud prevention brand.

Major Clients:

Pros:

  • Completely seamless integration
  • Ease of use and dashboard implementation
  • Extremely high customer service ratings

Cons:

  • Unclear service charges
  • KPI’s and analytics are not always communicated effectively
  • Unclear attribution factors corresponding to the source of the converted sale

Pricing: Two-tiered payment plan, with a free trial period for either.

Extra Perks:

  • Free Trial
  • Plug and Play Service
  • Real-Time Monitoring

Fraud Detection Software

#10 | Prove

Prove is an emerging star in the fraud detection services game. They offer phone-centric solutions that enable clients to acquire new consumers and engage with their existing consumers.

This is done by removing friction while bolstering security and enhancing consumer privacy & consumer choice. Prove Pre-Fill™ enables companies to drive more signups by auto-filling forms with authenticated identity data, to accelerate revenue while mitigating fraud across mobile, desktop, tablet, contact center, and in-store channels.

Major Clients:

Pros:

  • Seamless integration and swift onboarding
  • Offer a robust series of products, from Payfone Pre-fill to soft authentication like Payfone TrustScore, to even more friction-induced authentication products like Instant Link
  • Offers additional optimization services

Cons:

  • Password-protected documentation is slow-loading and difficult to sort
  • Slight overlap between Trust and Verify products
  • Some of Prove's products rely on third-party data such as Mobile Network Operations (MNOs) and credit bureaus, but their latest mobile-first products do not have this dependency and rely only on data gathered via SDK

Pricing: Call for a free quote

Extra Perks:

  • APIs
  • Real-Time Monitoring

Fraud Detection Software

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Why a Multi-Tiered Strategy is Best

Whatever fraud detection software company you choose, remember: you will need to integrate their efforts with your own internal fraud prevention systems.

This means that you should discuss available fraud tools with your processors in order to better gauge where you need the most help. You’ll also need to discern which fraud prevention service is best suited to your individual needs.

To achieve a successful multi-tiered fraud strategy, make sure it is:

Flexible

Merchants must be open to the idea that threats evolve—and strategies must too.

Adaptable

Technologies must be dynamic and able to adapt to new threats.

Scalable

As a business grows, products must be able to accommodate increased demands.

Human

Merchants can’t expect a computer to solve a problem created by humans.

Unique

No two businesses share the same risk exposure, so one-size-fits-all solutions are insufficient.

Need Help?

We realize choosing the best fraud detection software service is a big decision for any business. Good news, though: we’re here to help.

Chargebacks911® doesn’t replace current fraud detection tools. Instead, our aim is to make your efforts more efficient. We add a much-needed layer of protection that is most commonly overlooked: revenue recovery through chargeback remediation.

Contact Chargebacks911 today for a free ROI analysis. We’ll show you how much you stand to gain by optimizing this essential layer of fraud management.


Prevent Chargebacks.

Fight Fraud.

Recover Revenue.

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