- SEON: 360-Degree Protection from Fraud Risk
- Resolver: Analyze and Address Risk in Context
- Signifyd: Great Chargeback Guarantee Option
- BioCatch: Advanced Behavioral Biometrics vs Risk
- Kount: Ideal for Set-and-Forget Functionality
- Fusion Risk Management: Build Operational Resilience
- ThreatMark: Safer Transactions and Signups with Biometry
- TruValidate (Iovation): Homing In on ID Verification Risk
- Cybersource: A Reliable Option by Visa
- ArkOwl: A Robust, Highly Specialized Risk Tool
- Feedzai: Customer Risk Assessment Powerhouse
Key Features of Risk Management Software
The risk management market is full of options designed to suit companies in different verticals. However, there are key features that most organizations would benefit from:
- Rules-based risk assessment: Risk management software relies on a rules-based scoring system to separate good and malicious users.
- Customizable risk rules: Online fraudsters and criminals adapt to risk rules, which is why you must be able to update them accordingly.
- Real-time user fingerprinting: Risk management solutions assessing real-time customer data for risk are less likely to encounter stale information than those referencing legacy databases.
- Scalable and flexible integration: Any risk management software incorporated into an existing software stack should be implementable with minimal interruptions to daily workflows. The same applies as your company scales.
- Data management: Your risk management software should give you options to delete user data to remain compliant with data protection regulations.
- Support and ease of use: Different risk management solutions offer different levels of customer support, facilitating troubleshooting, risk rule creation, and general user experience.
Last but not least, it’s important to consider the pricing model, especially if it is a SaaS risk management solution. Ideally, you should be able to test it to calculate your ROI, but also remain free to cancel or modify the contract at any point.
Different Types of Risk Management Software and Tools
SEON
360° Protection from Fraud Risk
The dimension of risk management addressed by SEON’s solutions covers fraud and scam-adjacent risk throughout the risk assessment and mitigation process. At the center of this is the unique ability the software has to create real-time profiles of each customer using 90+ sources of intel, including social media and digital platforms – in addition to hundreds more data points.
In terms of the monitoring and identification of risks, the SEON search engine utilizes transparent, whitebox AI technology to trawl through historical fraud and risk events for each company and generate a list of rule suggestions – in addition to standard, industry-specific, and custom risk rules.
Pros
- Fully featured for fighting fraud
- Dynamic friction
- AML module
Cons
- Focus on online fraud
SEON Pricing
- Starts at $599. Free version available with limited API calls.
Choose SEON If
- Customer experience is important to you, but you don’t want to compromise safety.
SEON Pros
- Fully featured for fighting fraud: The technology powering this includes unique digital footprinting, comprehensive device fingerprinting, IP analysis modules, velocity searches, and machine learning.
- Dynamic friction: SEON’s products can help identify and manage the risk of fraud, scams, account takeover, and chargebacks across a spectrum of industries, employing dynamic friction methods that protect the customer journey from churn.
- AML module: If your risk management strategy includes avoiding compliance fines, SEON has got you covered with politically exposed person (PEP), sanction, and crime checklists, among others.
SEON Cons
- Focus on online fraud: At present, the type of risk SEON can help against is the risk of fraud, scams, account takeovers, and chargebacks. There is no identity document verification (IDV), for example, or management of offline risks.
Resolver
Analyze and Address Risk in Context
A company acquired by business services behemoth Kroll in 2022, Resolver focuses on making the best possible use of your risk data to put it in context, analyze, prioritize, and address it.
The Resolver workflow starts with collecting risk data, with the software then identifying links and patterns and presenting a wealth of reports on the business value of every risk. Over the years, the company has also added a number of risk-specific products for regulatory compliance, IT compliance, and vendor risk, among others.
Pros
- Customizability
- All-in-one
Cons
- No fraud prevention
Resolver Pricing
- Unfortunately, this information is not available to the public. Speak to the Resolver team.
Choose Resolver If
- You’re looking for a complete risk management solution and have several compliance needs.
Resolver Pros
- Customizability: Users appreciate the customizability of the interface and reports, as they can tailor these to their organization’s needs.
- All-in-one: The solution is comprehensive, and everything is stored within the Resolver platform for easier, compliant data governance.
Resolver Cons
- No fraud prevention: Unlike some other tools on this list, Resolver does not focus on cybersecurity or fraud.
Signifyd
Great Chargeback Guarantee Option
As a vendor, California-based Signifyd primarily serves the ecommerce sector, promising to deliver revenue protection, abuse prevention and payment compliance. As such, there are various ways in which Signifyd identifies and mitigates risk for merchants, including account protection, fraud prevention, and stopping fraudsters and scammers from harming the company and its customers.
Signifyd offers a chargeback guarantee model. This means that the brand will pay out of pocket for any fraudulent chargeback requests that slip through the net, thus doing away with the pain point of chargebacks – at least on paper. It’s important to note that this model generally leads to more false positives, and can thus drive customers away compared to friction-free strategies.
Pros
- Big data
- Caters to payment service providers
Cons
- Chargeback guarantee model
Signifyd Pricing
- No pricing information available at time of writing.
Choose Signifyd If
- A chargeback guarantee suits your business model and operational volume.
Signifyd Pros
- Big data: The vendor leverages big data to prevent abuse, block attempts at hacking into customer accounts, and protect from fraud.
- Caters to payment service providers (PSPs): Signifyd boasts a purpose-built solution for PSPs that includes Secure Customer Authentication (SCA) exemption management and transaction risk analysis.
Signifyd Cons
- Chargeback guarantee model: A big pull for online merchants is its chargeback guarantee, but this can incentivize the solution to err on the side of caution, potentially resulting in more false positives than solutions without such a guarantee.
BioCatch
Advanced Behavioral Biometrics vs Risk
Boston-based company BioCatch proposes advanced biometrics and behavior analysis to minimize risk and prevent fraud – and has been doing so since 2011.
It is certainly no understatement to label BioCatch as pioneering, considering it holds over 60 biometrics patents, in part owing to its founder’s prior involvement in cyberwarfare and military operations. The BioCatch strategy focuses almost exclusively on behavior analysis and does it so well that it is a valuable addition to the product stacks of high-risk enterprises.
Pros
- Behavior analysis
- Several touchpoints
Cons
- No real-time data enrichment
BioCatch Pricing
- Specific information on BioCatch pricing is not available at this time without speaking to the sales team.
Choose BioCatch If
- You want to leverage biometrics to benefit from behavioral analysis for risk prevention.
BioCatch Pros
- Behavior analysis: Behavioral biometrics, cognitive analysis, and behavioral insights examined include haptics such as press size, typing cadence, abnormal interactions, hesitation, and so on. As a result, it can compare someone’s behavior to what is expected of the average user as well as that particular customer’s past actions, flagging suspicious behavior.
- Several touchpoints: Works at different touchpoints, including account opening, PSD2 SCA, sign-in, and more.
BioCatch Cons
- No real-time data enrichment: BioCatch has a strong focus on biometrics but doesn’t offer much when it comes to leveraging data from the digital world.
Kount
Ideal for Set-and-Forget Functionality
Kount has evolved from a startup to part of the product roster of consumer credit powerhouse Equifax, after its February 2021 acquisition. Kount’s Identity Trust Global Network has been built over 13 years and includes 32+ billion interactions per year from across 250 countries and dozens of payment processors and card networks.
Types of risk Kount helps prevent in real-time include digital fraud, policy abuse, and account takeovers, while the consequences of risky behavior are also dealt with through extra functionality related to customer disputes.
Pros
- Automated solution
- Dispute management
Cons
- Blackbox risk management
Kount Pricing
- Kount pricing is available as a custom quote for your business via the official website.
Choose Kount If
- You’re a large-sized company whose pain points are related to card-not-present payments.
Kount Pros
- Automated solution: Kount Command is an automated solution best suited to those organizations who prefer a set-and-forget approach where decisions are made automatically in the background by unsupervised machine learning modules.
- Dispute management: Conveniently for online merchants, Kount provides chargeback, refund and dispute management assistance.
Kount Cons
- Blackbox risk management: Companies that would like to know why certain decisions are being reached, as well as fine-tune their processes, will be best served elsewhere.
Fusion Risk Management
Build Operational Resilience
Out of its Chicago offices, Fusion Risk Management is a respected name in identifying, assessing and managing risk, which has amassed awards and positive ratings. Manufacturing, data service providers, banks, and adjacent organizations are the key sectors it targets.
One of its biggest assets is the prebuilt connectors that allow one to source data “from anywhere.” This speeds up deployment, allows for smoother updates and expansion, and provides a more complete picture of risk as the company grows.
Pros
- ENGAGE Community
- Ease of use
Cons
- No compliance
Fusion Risk Management Pricing
- You can only get pricing information by speaking to the sales team. However, there are no setup costs.
Choose Fusion Risk Management If
- You’re looking for an intuitive way to utilize your data to enable business continuity.
Fusion Risk Management Pros
- ENGAGE Community: Available are seminars, forums, online learning, and hands-on support to help Fusion customers utilize the platform’s vast potential.
- Ease of use: The Fusion platform is built on the Salesforce Lightning Platform, which allows for cloud access from any device and full compatibility.
Fusion Risk Management Cons
- No compliance: At present, there is no focus on compliance and related risks for this solution, though its competitors across fraud risk and risk reporting often address this area.
ThreatMark
Safer Transactions and Signups with Biometry
Founded in 2015 and with offices in the Czech Republic and the USA, this startup offers transaction and fraud risk detection and analysis, including risk-based SCA. The vendor has so far received funding from Rockaway Capital, Springtide Ventures, and EASME.
Credit risk, transaction risk, and Know Your Customer (KYC) compliance are the main areas ThreatMark can address, promising to minimize fraud inclusive of human error stemming from social engineering, phishing, and zero-day attacks.
Pros
- Banking expertise
- Whitebox AI
Cons
- No free trial
ThreatMark Pricing
- Unfortunately, ThreatMark has not made public the pricing for its Anti-Fraud Suite.
Choose ThreatMark If
- Your needs are related to credit risk and KYC compliance, including onboarding and account opening.
ThreatMark Pros
- Banking expertise: AFS is tailored to the banking sector, covering KYC, fraud prevention, and transaction scoring for online and mobile banking, as well as business banking and API-based open banking.
- Whitebox AI: Because ThreatMark is a whitebox solution, customers can know exactly how and why decisions are reached, which is immensely helpful in both supporting customers and adjusting risk.
ThreatMark Cons
- No free trial: Though a demo is available, ThreatMark offers no free trial to potential customers, which would be a convenient way to decide if this solution is for you.
TruValidate (Iovation)
Homing In on ID Verification Risk
Iovation has been popular in the fraud-fighting world for customers in the iGaming sector. In 2018, it was acquired by TransUnion and rebranded, now serving customers using the moniker TruValidate.
TruValidate focuses on mitigating compliance and risk linked to KYC and CDD, identity verification, and fraud at large. To do so, it employs IP analysis, behavior tracking, device fingerprinting, and more industry staples. There is also strong document verification using facial recognition.
Pros
- Compliance partner
Cons
- Less-than-ideal risk stack integration
TruValidate Pricing
- TruValidate pricing information is currently not available to the public.
Choose TruValidate If
- You want to explore the full TransUnion risk management ecosystem, including products for risk management, fraud prevention, and/or manual lookups.
TruValidate Pros
- Compliance partner: Addresses fraud and ID scams, but also allows for compliance risk mitigation by satisfying KYC, AML, and other mandates.
- Wide range of risk management products: You get a panoply of tools, from identity verification and credit score calculations to identity validation and manual lookups.
TruValidate Cons
- Less-than-ideal risk stack integration: As tends to happen with this type of company structure, integration is exceptional with affiliated products, but there have been reports of issues when deploying it alongside other vendors’ products.
Cybersource
A Reliable Option by Visa
Cybersource was originally founded all the way back in 1994, as an online payment platform and fraud management solution – indeed, one of the pioneers of such services. The company was acquired by Visa in 2010, allowing it to utilize the data pool provided by all 141 billion VisaNet historical transactions.
Solutions for safe payment acceptance reference these same databases, and there are modules for omnichannel management and a proprietary 3-D Secure application to minimize noncompliance risk.
Pros
- Fast scoring
- Access to huge databases
Cons
- Outdated user experience (UI)
Cybersource Pricing
- Not currently published online, but has specialized structures for medium-sized businesses and enterprises.
Choose Cybersource If
- You want to benefit from Visa’s vast network of payment data for risk management that focuses on payments.
Cybersource Pros
- Fast scoring: The software employs multiple machine learning algorithms, choosing the best one for each transaction and then returning a score in less than one second.
- Access to huge databases: Integrating Cybersource into a security stack means the risk rules are informed by over 141 billion transactions and are customized to the customer’s particular vertical.
Cybersource Cons
- Dated UI: Some reviewers have mentioned their dislike of the user interface of this solution, which they found to be unattractive.
ArkOwl
A Robust, Highly Specialized Risk Tool
Based in the Great Lakes region in the US, ArkOwl was founded in 2012 by Rob Daline to do just one thing exceptionally well: ArkOwl’s primary focus is email and phone verification and additional enrichment.
ArkOwl takes privacy very seriously. As the product starts with a data point – email address or phone number – and enriches it with information from specific secure outside databases, the company doesn’t store any customer data, so it can’t be leaked. When requests are made, the data also goes through an anonymization process, so any database vulnerabilities can’t lead back to your customers.
Pros
- Real-time data enrichment
- Anonymous and secure
Cons
- Very narrow focus
ArkOwl Pricing
- Though it does not publish specifics online, the website does list flexible pricing plans designed for a range of customer budgets.
Choose ArkOwl If
- You want to complement your risk stack with real-time data points starting with an email address.
ArkOwl Pros
- Real-time data enrichment: All lookups conducted by the software reference real-time data, so there is no chance of stale information on incoming traffic, while it can deliver results in large batch queries.
- Anonymous and secure: One of ArkOwl’s primary concerns is keeping user data secure, minimizing risk exposure by making your reputation less likely to be damaged in the event of a data breach.
ArkOwl Cons
- Very narrow focus: ArkOwl is not a standalone risk management tool but can boost the efficacy of an existing risk analysis stack by providing reliable, insightful email and phone number verification and analysis.
Feedzai
Customer Risk Assessment Powerhouse
With offices in both Portugal and Silicon Valley and now in its round D funding stage, Feedzai has a reputation for strong risk management capabilities. Its customers include four out of the five largest banks in North America, with Citibank being one of the largest – as well as one of Feedzai’s backers.
The company’s powerful risk management tool, RiskOps is a platform combining every layer of customer risk assessment, from onboarding screening to hardened KYC. The RiskOps suite has modules for seemingly every potential application within ecommerce and fintech risk management, including identity verification, account opening, account takeovers, AML, KYC and CDD, transaction fraud, and watchlist screening.
Pros
- Visual link analysis
- AML screening
Cons
- Steep learning curve
Feedzai Pricing
- Feedzai does not currently list its pricing structure online, so you’ll have to contact its sales team for a quote.
Choose Feedzai If
- You’re in financial services and have a sizeable team of experienced fraud managers.
Feedzai Pros
- Visual link analysis: Genome by Feedzai gives fraud analysts and managers a quicker, more efficient way to visualize results, which industry insiders have lauded.
- AML screening: As it caters to banking, Feedzai can check sanctions lists, PEP lists, and other key sources to satisfy its customers’ anti-money laundering compliance obligations.
Feedzai Cons
- Steep learning curve: The sheer level of detail in Feedzai can be daunting to more junior fraud analysts, while even experienced professionals will have to dedicate time to learn it.
Partner with SEON to manage risk and reduce fraud without impacting your customers’ experience – with real time data enrichment, clearbox machine learning, and advanced APIs.
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Pros and Cons of Risk Management Software
The use of risk management software comes with a long list of benefits, but also some shortcomings. Let’s take a closer look.
Risk Management Software Pros
- Automated flagging: The main advantage of risk management software is that it can work on autopilot 24/7. Even if it needs manual reviews, chances are that it will reduce your team’s operational requirements.
- Integrating reporting: All the data that is logged by the software can be extracted for reports and data analytics.
- Cost-effective: After the initial integration costs, risk management software is certainly more affordable than a full-time risk management team.
- No maintenance: If you purchase your risk management software as a SaaS, the vendor will take care of all the updates, with little to no effort from your developers.
Risk Management Software Cons
- Slow deployment and integration: Due to the complicated nature of risk management, integrating the software can be time-consuming, and may even involve some business downtime.
- Data protection: Relying on a third party means sharing your business data. For some organizations, this isn’t an option.
- Learning curve: If your risk management team is new to the software, it may require training.
Why Use Risk Management Software?
Any customer-facing website that processes payments or otherwise falls within regulated verticals can be targeted by fraud and should strongly consider implementing risk management software. Best-practice risk management should include the potential for a company to incur noncompliance fines based on data, money laundering, and customer safety regulations. For many companies, toeing this line will necessitate a software solution. Even for small companies, risking a breach in data or customer safety, or becoming embroiled in a money laundering scandal, could result in massive punitive action.
Selecting Risk Management Software
There is no perfect risk management software that will fit every single company’s requirements and preferences.
We’ve already noted above that it largely depends on the size and type of your business, as well as your risk appetite and overall risk landscape in your sector.
However, to get you started, we would advise you to use any tools or information you already have at your disposal to identify and assess risk as best as you can, including doing a risk matrix analysis.
From there, you can begin to consider which of the above or other risk management tools will satisfy the criteria that you have defined. Hopefully, the suggestions we’ve provided will be a good starting point.
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FAQs
Risk management solutions are software suites that integrate into existing infrastructure, providing the tools necessary to identify, measure, and ultimately mitigate bad actors, both internal and external, preventing criminal activity in your domain.
Unfortunately, there’s no short answer to this question. Vendors have different pricing models. In some cases, one or two tools are enough for a company, while in others, many more are required, at a higher cost overall. The best course of action is to clearly identify your risk management needs and speak to each individual vendor.
Though solutions vary in terms of specific capabilities, all risk management software should be able to identify indicators of risk, distinguishing them from non-risky users. They should also analyze the likelihood of that risk turning into fraud, weighing more dangerous indicators more heavily than moderate ones. Finally, they should mitigate the likelihood of risk turning into a bigger issue by either preventing the risk user from progressing or else conducting further investigation.
Sources
- PR Newswire: Risk Management Market to Garner $28.87 Bn, Globally, by 2027 at 18.7% CAGR: Allied Market Research
