Top 6 Ecommerce Fraud Detection Software & Tools

Top 6 Ecommerce Fraud Detection Software & Tools

November 15, 2021

As the world of commerce moves increasingly online, so do fraudsters. This article will evaluate the best ecommerce fraud prevention software available on the market today. 

List of Top Ecommerce Fraud Detection Software

  • SEON – Lower Chargebacks and False Positives
  • Riskified – Blackbox AI for Larger Retailers
  • Signifyd – Revenue, Abuse, and Payments Protection
  • Kount – 13 Years’ Worth of Business Data
  • Sift – Digital Trust and Safety + Chargeback Prevention
  • Cybersource – Single Platform Commerce Solution

What Is Ecommerce Fraud Prevention Software?

Ecommerce fraud prevention software allows online stores to automatically accept or decline payments to mitigate the risk of chargebacks. 

The ability to log user and transaction details is also helpful when it comes to disputing chargebacks, friendly fraud, and return fraud. The same software can also protect user accounts by improving authentication security. 

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What to Look for in Ecommerce Fraud Prevention Software

All ecommerce fraud prevention software is built on more or less the same features: the ability to log data, monitor it, and assign risk scores

Standard tools include BIN lookup to learn more about the credit card, device fingerprinting, which helps you understand how your web visitors connect to your site, and IP analysis to see where they are logging in from or if they’re trying to fake their location.

However, there may be other key features worth considering:

  • Data enrichment: The process matches the information you have (say, a customer email address), and connects it to external databases. This lets you learn more about users without asking them to fill extra fields, making it ideal to reduce risk without adding friction.
  • Custom rules: Blocking certain actions is useful if you can understand why they were flagged. Not all fraud prevention tools let you see and tweak what’s going on under the hood, which can be frustrating for more sophisticated risk management strategies.
  • Reverse social media lookup: An increasingly popular and effective weapon in the fight against fraud. Learning if your users have social accounts helps identify them, and reduces the risk of onboarding fraudsters with a suspicious lack of social presence online.
  • Machine learning or not: A machine learning system is another nearly essential tool in your arsenal. It can suggest risk rules based on historical data. Note that not all ML systems are created equal – for instance, in the case of whitebox vs blackbox machine learning.
  • Pricing & Minimum commitment: In other words, hidden fees. Some vendors will charge for the integration, support, and extra features. Make sure your contract is transparent from the get-go. Ideally, look for ecommerce fraud detection software that offers a free trial, so you can get a feel for whether it works for you.

The 6 Best Ecommerce Fraud Prevention Software

Disclaimer: Everything written about the companies mentioned in this article was gleaned from online research, including user reviews. We did not have time to manually test all the tools. However, we ensured the information was correct as of fall 2021. Feel free to contact us to request an update/correction.

SEON – Lower Chargebacks and False Positives

From transaction fraud to return fraud and even triangulation fraud, there’s little you can’t control with SEON. The key? Leveraging the power of alternative data and dynamic friction to reduce fraud rates without slowing your customers’ purchase journey.

Here’s how it works: Users arrive on your site, and SEON immediately begins collecting data behind the scenes. You choose the data points to focus on and enrich, such as IP address, email address, phone number, and device. It also lets you check 35+ platforms and social media networks for linked profiles and open-sourced customer info.

All the data is fed through risk rules, which are customizable and can be suggested by a whitebox machine learning engine. As you flag more fraud cases, the system learns to recognize suspicious patterns in your particular website users.

The goal is to reduce fraud at every stage, whether it’s a login, sign up, or, of course, a payment, by giving you complete control of your risk appetite. This helps reduce false positives, but you can also use all the collected data to dispute chargebacks and prove you’re dealing with friendly fraud.

Read SEON. Fraud Fighters reviews on G2


  • Frictionless digital footprint analysis: You don’t have to slow down the user experience to learn more about your users. Only ask for extra information with high-risk customers to accelerate checkout and accept more valid payments.
  • Reverse social media lookup: SEON aggregates data from 35+ social networks and platforms so you can quickly see if you’re dealing with a real person or not.
  • Spot connections between accounts: Multi-accounting and bonus abuse challenges? SEON can take down entire networks of fraudsters by highlighting links between their accounts.
  • Transparent pricing: SEON lets you pay per API call, try the product for free for 30 days, and cancel anytime you want.
  • Flexible integration: Use SEON on its own, or pick and mix any APIs you need to integrate with your existing tech stack. Or use SEON’s Shopify app, Chrome extension, Zapier integration, or the user-friendly Admin Panel interface. We also offer our device fingerprinting on premise for clients with tight GDPR/Compliance requirements.


  • No chargeback guarantee: SEON believes that the chargeback guarantee model is an incentive to create too many false positives. If it’s the pricing model you want, there are better alternatives.

SEON Pricing:

  • Starting from $99 per month.

Riskified – Blackbox AI for Larger Retailers

ecommerce fraud prevention software riskified

Founded by Eido Gal and Assaf Feldman in 2013, Riskified initially focused on general ecommerce security. A few years later, the company had morphed into a fully-fledged fraud prevention solution designed to reduce operating costs, grow revenue, and reduce chargeback rates. 

And it worked: As of today, three of the 10 largest online retailers worldwide rely on Riskified, along with many recognizable brand names such as Wish, Wayfair,, and Ticketmaster, among others. 

Riskified combines shared databases from a cross-merchant network along with a blackbox AI engine to automatically detect risky transactions and block them before they become chargebacks. 

The publicly-traded company also branched out in other areas of fraud detection such as bonus abuse (via the Policy Protect tool) and account authentication (with Account Secure).

Riskified Pros

  • Large merchant databases: Riskified has worked alongside online retailers for more than a decade and it has the data to prove it. All that information completes their risk scoring, which can help detect suspicious activity on your online store.
  • Trusted by larger retailers: If you process a high volume of transactions per month, you’ll be in good hands with Riskified.
  • Payment authorization solution: Riskified’s Deco product is its unique payment authorization solution, designed to assess the quality of a transaction.

Riskified Cons

  • No live data enrichment: The data you get to calculate risk is shared across merchants, but never enriched from third-party sources. 
  • Opaque pricing: See below.

Riskified Pricing:

  • Riskified operates via a chargeback guarantee model, where you are charged per checked transaction.
  • An unintended consequence of the model may be a higher rate of false positives, triggered by an overprotective fraud detection system. For actual pricing quotes, you’ll also need to get in touch with their sales team.

Signifyd – Revenue, Abuse, and Payments Protection

signifyd ecommerce fraud prevention software

Rajesh Ramanand and Michael Liberty met when they worked at PayPal, where they realized that allowing online payments was one thing, but protecting stores from fraud was just as important. Their solution? A fintech that calls itself the “defender of ecommerce” and promises not to treat your customers like criminals. 

Signifyd sure has found support in the online store world, as it currently protects some of the biggest retailers such as Samsung, Illy, eBay, and Mango, amongst others. 

Under the hood, the tech is broken down into three key components, namely: Revenue Protection, Abuse Protection (both powered by blackbox machine learning), and Payments Optimization, a PSD2 compliant solution that authenticates transactions to accelerate the customer’s checkout experience.

Signifyd Pros

  • Enterprise ecommerce specialists: Larger retailers should find themselves at home with Signifyd’s other clients. 
  • Data enrichment: You can aggregate external data based on an email address or phone number.
  • Powerful integrations: Signifyd works seamlessly with Salesforce, Shopify, and Magento. 

Signifyd Cons

  • No reverse social media lookup: While you get some data enrichment, you won’t be able to learn anything from social networks and similar platforms.
  • Chargeback guarantee model: This is a pro for some online stores, but others should consider whether it may risk an increase in false positives.

Signifyd Pricing:

  • Available upon request. 

Kount – 13 Years’ Worth of Business Data

ecommerce fraud prevention software

As the title above suggests, one of Kount’s greatest selling points is its Identity Trust Global Network, containing a whopping 23 billion data points for user actions and profiles across 250 countries and 75 industries. 

Other key products include Command, the firm’s end-to-end solution for dealing with CNP transactions; Central, tailored to payment service providers; and Control, their ATO protection tool. Kount’s technology is used by world-leading online retailers such as PetSmart and Staples, but also financial institutions such as Barclays and Chase.

Bonus point: Kount was acquired by Equifax in February 2021, which means you’re very likely to see integrations with other tools from the UK’s leading credit scoring provider in the near future. 

Kount Pros

  • Strong chargeback prevention focus: A lot of the data points Kount has gathered over the years are designed to point towards chargeback fraud in order to prevent it.
  • Protect the entire customer journey: From signup to checkout and even authentication at login, you can calculate risk at every step.
  • Customizable solution: One reason Kount works just as well for online stores as banks is that you can have complete control over how you mitigate risk.

Kount Cons

  • No phone or social media lookup: You’ll get tons of data pertaining to payment, yes, but not much extra info to complete a customer profile.
  • Opaque pricing: The chargeback guarantee model can be loved or loathed by online stores, but everyone agrees that hiding pricing behind sales calls is a downside.

Kount Pricing:

  • You’ll need to get in touch with the company directly to learn more about prices.

Sift – Digital Trust and Safety + Chargeback Prevention

ecommerce fraud prevention tool sift review

A Y Combinator alum with a $1B valuation, Sift has quickly emerged as one of the startup world’s favorite fraud protection solutions – including for online stores. It currently protects a number of renowned brands operating in the CNP space, such as Airbnb, McDonald’s, and Doordash, among others. 

The company’s key products are their Digital Trust and Safety Suite, which includes all their APIs designed to stop fraud; Account Defense, the ATO solution; Payment Protection, which combines shared databases and machine learning; and Dispute Management, specifically tailored to moderating and safeguarding content.

As you can imagine, a key advantage of having this whole suite of products is that they seamlessly integrate with each other and that most of them offer enough customization options to adapt the tools to your risk managers’ needs. 

Sift Pros

  • Specialist chargeback module: It should offer peace of mind to online retailers who want to see results out-of-the-box.
  • Data enrichment and machine learning: Reduce user friction by adding external data to your user profiles, and feed the results to a powerful ML system.

Sift Cons

  • Blackbox AI: Sift is great at calculating risk. But how exactly? It’s not always clear, because of the opaque nature of its blackbox algorithms.
  • No reverse social media lookup: Reverse social media lookup is missing from Sift’s tech, though it’s an increasingly popular weapon in the fight against fraud at the signup stage.

Sift Pricing:

  • Available by contacting the sales team.

Cybersource – Single Platform Commerce Solution

cybersource fraud pevention by visa fraud tool comparison

When it comes to gathering credit card data, you’d be right to guess that Visa is pretty good at it. This is why it would make sense for the card operator to get into the payment protection industry by acquiring Cybersource, a fraud prevention company, back in 2010 (for a whopping $2B).

What it means for its users is that you can get a single point of control for payment acceptance, fraud management, and transaction security. In its own words, Cybersource’s goal is to reimagine payments via seamless personalized experiences that are friendly and secure.

In practice, this is done via the standard IP and device analysis, along with behavior tracking and user authentication. The key point to note is that Cybersource takes a bit of an all-or-nothing approach, which means you’ll have to handle both payments and risk management with the company.

Cybersource Pros

  • Payments and payment protection: The partnership with Visa makes it an attractive proposition if you need to start accepting payments on your site with peace of mind.
  • Additional payments services: You get fraud and risk management, but also extras such as payouts, global tax calculation, and currency conversion for CNP, BNPL, ewallets, direct debit, and more. 

Cybersource Cons

  • Full integration required: Cybersource is at its best when you use it for payment acceptance and fraud prevention – meaning it’s not ideal for a multi-layered ecommerce fraud prevention approach.
  • Not suited for SMBs: Smaller online stores with low to medium volume transactions could be deterred by Cybersource’s lengthy and expensive contracts.

Cybersource Pricing:

  • You’ll need to contact the company for a quote.

Why Do You Need to Invest in Extra Ecommerce Fraud Prevention Software?

Juniper Research forecasts a loss of $50.5 billion to ecommerce fraud by 2024. Ecommerce fraud prevention is the solution, but how exactly? A handful of ways in which the technology can help include the below:

  • Reduce costs and resources lost to fraud: Having the proper risk management solutions in place can help save on lost items, chargeback fees, and support time dealing with defrauded customers. That’s not to mention return fraud, triangulation fraud, and other tactics that could damage your profits in the long run.
  • Maintain a reasonable chargeback rate: Payment processors will avoid working with stores that process too many chargebacks. Your business could also be downgraded to a high-risk merchant category, which will incur extra charges for processing credit card payments.
  • Secure your customers’ accounts: Whether you operate as an online wallet or not, fraudsters will attempt to log in with existing customer details. They may extract personal information, lock your users out, and make payments that will result in chargeback fees for you.
  • Control your brand reputation: If your online store is targeted by fraudsters, you could gain a reputation as an unsafe place to shop. 
  • Improve the efficiency of your manual reviews: While most ecommerce fraud prevention software is designed to automatically approve or decline actions (login, payment, or signups), the technology can also help your manual review team gain more information to make better-informed decisions. Some retailers even use the tools to check questions coming from the support channels, to ensure they’re not targeted by social engineering attacks.
  • Improve the user experience: Perhaps counterintuitively, deploying a fraud detection solution can actually accelerate the checkout process. When you have risk scores that clearly point to legitimate users, you can reduce the number of verification steps, which makes buying easier and faster.

Choosing the Right Ecommerce Fraud Detection Software

Online stores have always been a major target for fraudsters. And while historically they only attacked retailers dealing in high-end electronics or jewelry, these days, no ecommerce outlet is safe. 

Let’s not forget that a high chargeback rate isn’t just worrying for your bottom line; it could also put you in card network operators’ black books, which would mean a higher transaction fee on every payment.

Luckily, there is an increasing number of ecommerce fraud prevention solutions available for everyone from small to large retailers. Hopefully, this guide is a good primer on where to look for the right tools and companies that will protect your online store. 

Ecommerce Fraud Detection FAQs

How Can You Prevent Ecommerce Fraud?

Fraud in ecommerce can be prevented by deploying fraud detection software designed to avoid chargebacks, protect customer accounts, and help with transaction reviews. 

What Are Common Types of Ecommerce Fraud?

Fraudsters target ecommerce by using stolen credit card details. This leads to high chargeback rates. They also attempt to steal user login credentials, which is known as account takeover or ATO. If you offer bonuses for referrals, you should also look out for multi accounting fraud (when criminals create multiple profiles to reap benefits and rewards). 

How To Make the Case To Invest in Ecommerce Fraud Detection Software?

Investing in ecommerce fraud detection software isn’t just about improving your company’s bottom line. It’s also a competitive advantage to retain a low chargeback rate, as card operators such as Visa or MasterCard could charge you more for payments. Protecting accounts is also key in maintaining a good business reputation.


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