Digital payments have revolutionized business operations, offering opportunities but exposing companies to advanced fraud risks. Valued at $3.53 trillion in 2018, the global digital payment market is expected to reach $19.89 trillion by 2026, highlighting the need for advanced fraud detection strategies to match this rapid growth.
Emerging threats require proactive, intelligent anti-fraud solutions that evolve with new tactics while staying efficient and user-friendly. To meet the demand for seamless prevention, the industry has developed innovative tools featuring cutting-edge technology, streamlined processes, and real-time adaptability.
Discover how evolving technology is reshaping fraud tactics and what businesses can do to stay ahead.
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How to Choose a Fraud Detection Software
Choosing the right software is a strategic decision. It should meet your needs now, scale with growth, and integrate smoothly with your operations.
Here are key factors to consider for effective risk management:
- Detection features: It’s crucial to ensure the software provides the necessary features to combat specific types of fraud, such as identity theft, payment fraud, or unauthorized account access. Tailor your choice to address your most pressing fraud concerns.
- Integration flexibility: Although many fraud detection systems are offered as Software as a Service (SaaS), depending on your company’s infrastructure and security requirements, on-premise integration might be necessary.
- Payment model: Avoid lengthy contracts that may not be cost-effective in the long run. Opt for a solution that offers a trial period or a short-term payment option to evaluate the software’s effectiveness before making a long-term commitment.
- Support and documentation: Confirm that the vendor provides comprehensive customer support and free assistance, particularly during the software integration phase. The availability of clear, detailed documentation is essential, allowing you to resolve issues independently without constant reliance on customer support.
Key Features of Fraud Detection Software
Effective fraud detection software combines multiple technologies into a single, seamless system. The best solutions enhance security, improve efficiency, and adapt to evolving threats. Here are the key features that define modern fraud prevention:
- All-in-One fraud protection: Combines fraud detection and AML tools in one platform, reducing the need for multiple systems. This improves teamwork and strengthens security.
- Live risk monitoring: Tracks digital footprints in real time using trusted data sources. Analyzes devices, emails, phones, and IPs while ensuring compliance with sanctions and watchlists.
- Clear AI-driven insights: AI-generated rules that provide easy-to-understand explanations, so managers can trust fraud detection decisions without relying on complex algorithms.
- Flexible, adaptive security: Adjusts quickly to new fraud threats and business needs with customizable rules, keeping businesses compliant with changing regulations.
- Quick and easy integration: Deploys fast with minimal setup, making fraud prevention seamless without disrupting business operations.
List of Fraud Detection Software
Top 10 Fraud Detection Software Companies
Disclaimer: Everything you’ll read in this article was gleaned from online research, including user reviews. We did not have time to test every tool manually. This article was last updated in Q1 2025. Please feel free to contact us to request an update/correction.
SEON
Granular, Flexible, and Transparent
SEON is the leading fraud prevention and anti-money laundering solution, transforming how top-tier risk teams fight fraud. Founded initially to solve fraud problems in the crypto space, the company has evolved to protect over 5,000 global companies, including Afterpay, Revolut, Wise, Bilt and Branch.
SEON uses real-time digital footprint, device intelligence, and a customizable AI-driven rules engine to help businesses detect and prevent threats. Specializing in iGaming, fintech, financial services, and ecommerce, SEON has prevented $200 billion in fraud. It is highly trusted, with over 300 positive reviews on G2, Capterra, and the AWS Marketplace.
SEON’s Features
- Solution: SEON offers a comprehensive solution for fraud and money laundering prevention, covering the entire customer journey. Its custom-built technology provides a seamless, integrated experience, boosting collaboration and efficiency among fraud and compliance teams while saving time, resources, and avoiding third-party fees.
- Extensive real-time data: SEON delivers real-time insights from 200+ digital sources, device intelligence, IP and BIN lookups, card checks, and AML screening. It centralizes key data to detect patterns and prevent fraud and money laundering.
- Transparent, AI-driven insights: SEON combines powerful blackbox algorithms with transparent whitebox models to detect emerging patterns and provide clear, actionable insights into suspicious activities. This dual approach allows you to understand detection logic and adjust strategies using AI-suggested, human-readable rules, keeping you one step ahead.
- Adaptable and customizable risk rules: SEON offers customizable risk rules to match your specific regulatory requirements, allowing you to create as many rules as needed. This flexibility ensures your fraud and money laundering prevention strategies can evolve with your business, maintaining robust protection at all times.
- Speedy integration: SEON simplifies integration with a single API connection. Our dedicated customer support ensures a quick, smooth setup and provides tailored assistance to help you fully utilize the platform and address any concerns.
SEON’s fraud detection platform not only meets the diverse needs of fraud and compliance teams but also turns fraud detection into a strategic advantage, enhancing competitiveness in the market.
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TruValidate
After acquiring Iovation in 2018, TransUnion rebranded it as TruValidate. While Iovation excelled in device recognition for authentication and fraud prevention, TruValidate lacks machine learning and AML solutions needed for comprehensive fraud and compliance.
Emailage
Acquired by LexisNexis in 2020, Emailage enhances user intelligence through email analysis and predictive risk scoring. It uses a blackbox machine learning approach, combining LexisNexis’ Digital Identity Network data with Emailage’s proprietary database and basic social media checks.
Emailage addresses specific fraud scenarios but lacks device intelligence, transparent machine learning, and compliance tools.
ThreatMetrix
ThreatMetrix, founded in 2005 and now part of LexisNexis Risk Solutions, focuses on user identity verification and authentication using over 78 billion data instances. Despite its data capabilities and integration potential, it has limitations that may hinder its effectiveness as a comprehensive fraud prevention solution.
Sift
Sift, a fintech leader, offers tailored solutions for fraud-affected sectors like retail, food and beverage, travel, and ticketing. Its flagship product, the Digital Trust & Safety Suite, aims to reduce losses and enhance efficiency. However, it has significant gaps compared to a modern fraud prevention system, potentially hindering protection.
Feedzai
Feedzai is a comprehensive risk management and AML platform for retail banks, corporate banks, and PSPs, offering AI-powered AML screening, visual link analysis, and whitebox explanations. However, it may not fully meet the needs of today’s rapidly evolving fraud prevention landscape.
ArkOwl
ArkOwl enhances customer verification during registration and onboarding by aggregating live data points, focusing on email and phone verification. This helps companies understand customer identities in manual reviews. However, its limitations may affect its effectiveness as a standalone solution for broader fraud prevention strategies.
Trustfull
Trustfull specializes in customer onboarding solutions using advanced digital footprinting and device intelligence analysis, enhanced by real-time data and IP-based geolocation. However, it lacks a comprehensive solution for the entire customer journey, including money laundering prevention, limiting its use for organizations seeking a complete fraud and compliance platform.
Kount
Kount helps businesses prevent fraud, verify identities, and approve more transactions with AI-driven technology. Its platform reduces fraud costs, enhances security, and improves customer trust. Key features include advanced fraud detection, device fingerprinting, IP tracking, transaction scoring, and real-time analytics. With machine learning and global data, Kount helps businesses stay ahead of fraudsters.
Fraud.net
Fraud.net helps businesses prevent fraud, stop money laundering, and manage risk with AI-powered technology. Its platform detects threats in real time, automates compliance, and simplifies decision-making with easy-to-use tools and integrated data.
Buy vs. Build Decision for Fraud Detection Software
Choosing between an in-house solution or a third-party provider has pros and cons. A well-informed decision can boost security and efficiency. Here are key factors to consider:
- In-house vs. outsourced fraud solutions: Choosing between managing fraud detection internally or using a third-party provider depends on factors like control, data security, and operational costs.
- Established providers vs. startups: Experienced vendors offer reliability and strong ROI, while startups bring innovation, flexible contracts, and cost-effective solutions.
- Static vs. customizable transaction monitoring: Customizable monitoring tools improve security by adapting to an institution’s unique risk profile.
- Whitebox vs. blackbox machine learning: Whitebox models offer transparency and control over decision-making, while blackbox models provide efficient, hands-off automation.
- Friction vs. seamless user experience: Strong security must be balanced with usability, ensuring fraud prevention doesn’t disrupt the customer experience, especially for neobanks.
Unsure whether to build or buy a fraud solution? Our guide compares costs, scalability, and long-term impact to help you decide.
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Related Case Studies
- SEON: Revolut Leverages SEON’s Anti-Fraud Platform With Great ROI
- SEON: LeoVegas Boosts Fraud Detection by 10% and Enhances Analyst Efficiency with SEON
- SEON: Mokka Dropped Their Fraud Rates by Over 65%
Frequently Asked Questions
Fraud detection software is designed to automatically stop online fraud. The software analyses online user actions and, based on your risk rules, blocks those that are deemed high risk.
A high-risk user action can be a payment, signup, or login, among others. The fraud detection software must be setup to analyse user or payment data, analyse that data via risk rules, and decide if it is risky or not.
To choose the right fraud detection software, start by assessing your company’s fraud risks, existing security tools, and risk tolerance. Key features to look for include customizable risk rules, device fingerprinting, alternative data scoring, real-time analysis, and machine learning for automation.
Today, all businesses are at risk from fraud, no matter their sector. In fact, the current fraud landscape demonstrates that those companies and decision-makers who think they couldn’t be affected are more likely to be targeted – exactly because they are less likely to invest in their defenses.
