Top Fraud Prevention Platforms

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.

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.

FraudLabs Pro

fraudlabs pro

Merchant Profile – SMB

Automated Workflow – yes

Machine Learning – yes

Insights Dashboard – yes

Device Fingerprinting – yes

Chargeback Guarantee – no

Supported Platforms – Magento, OpenCart, osCommerce, PrestaShop, Shopify, VirtueMart, WooCommerce, ZenCart and more.

Customization – yes

Pricing – starting at $29.95 per month

Free Plan – yes

Free Trial – no

 

FraudLabs Pro gives merchants access to a known fraudster “blacklist” compiled from their global merchant network, allowing them to benefit from the experiences of others without having to suffer the pain of a chargeback themselves.

 

In addition, the platform performs a comprehensive fraud validation on all elements such as credit card data, geolocation, email, transaction velocity, and proxy use to accurately detect fraudulent orders. Then, merchants can analyze all that data and create customized fraud prevention strategies using as many as 40 customized validation rules.

 

FraudLabs Pro currently offers 20 add-ons/extensions/plugins for major e-commerce platforms, and each one allows merchants to visualize everything on an intuitive dashboard that allows for easy data navigation and analysis. [/vc_column_text][/vc_column][/vc_row]

Feedzai

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.

Riskified

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

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

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

clear.sale

 

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

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.

Kount

kount

 

Merchant Profile – SMB, Large

Automated Workflow – yes

Machine Learning – yes

Insights Dashboard – yes

Device Fingerprinting – yes

Chargeback Guarantee – no

Supported Platforms – Magento

Customization – yes

Pricing – based on transaction volume

Free Plan – no

Free Trial – yes

 

Kount uses a rankings score called the Kount Risk Score to provide quick expert guidance to merchants. Apart from an extensive set of rules included in the Kount service, they can also provide access to rules generated by other experts in Fraud Detection, allowing merchants to leverage others’ knowledge to improve their own eCommerce fraud prevention.

 

Kount offers functionality to accept and decline transactions, or it’s Workflow Queue Manager can be set to send orders that fall into a merchant-defined risk profile grey area on to manual review. .

 

The Kount Agent Web Console is Kount’s user interface and it gives single view access to all the data, Kount Risk Score Information, and third-party information required to evaluate orders. Merchants can also request that Kount’s expert fraud detection team perform a comprehensive review of the rules used in their fraud detection decisions.

Ravelin

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

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.

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