The fraud management industry is set to grow to USD 38.2 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 12.8%, highlighting the need for companies to increase spending on fighting online fraud.
Your fraud detection software needs to be able to combine user fingerprinting, powerful data analysis and real-time risk scoring to protect your business and its customers.
List of the Best Fraud Detection Software
- SEON: Granular, Flexible, and Transparent
- Signifyd: Automated Fraud Fighting for Merchants
- Sift: One of the Fastest Growing Anti-Risk Vendors
- Kount: Enterprise-Grade Fraud Detection
- Emailage: Reverse Email Lookup Specialists
- ArkOwl: Live Data Enrichment from Several Sources
- Ekata: Part of Mastercard Group
- TruValidate: The Former iGaming Staple
- ThreatMetrix: Protection, Seamlessness, Personalization
- Cybersource: Modern, Modular Platform for Growth
- FraudHunt: Affordable Security for Emerging Markets
- Accertify: Dynamic Automation to Suit Your Preferences
What Is Fraud Detection Software?
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.
A fraud detection software is often deployed to prevent payment fraud and chargebacks, identity fraud, and account takeover fraud, and a key advantage is that it can run automatically with little to no human oversight.
SEON offers a fully modular fraud solution that doesn’t affect the customer experience. Enjoy machine learning, real-time data and the support of our fraud experts.
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Top Features of Fraud Detection Software
Fraud detection software comes in many shapes and sizes depending on your risk challenge. However, the key features tend to remain the same. They include:
- Risk rules: They allow you to filter user actions based on the data you find. A basic risk rule would be: If the IP address belongs to a VPN, block the login attempt.
- Risk scoring: Some rules can be static but others lets you play with scores and thresholds. For example: If a customer is not based in the same country as their payment card, add 5 points to their risk score.
- Real-time monitoring: For ID verification and account protection, for instance, you must also be able to block a suspicious action immediately, before it’s too late.
- Machine learning engine: The best fraud prevention software will include a machine learning (ML) algorithm to suggest risk rules based on your historical business data.
The Best Fraud Detection Software in 2023
Without further ado, let’s look at our list of the best fraud detection software for the year – including pros, cons, and which problems they solve best.
|Disclaimer: Everything you’ll read in this article was gleaned from online research, including user reviews. We did not have time to manually test every tool. This article was last updated in Q3 2023. Please feel free to contact us to request an update/correction.|
Granular, Flexible, and Transparent
SEON prides itself on being accurate, granular, and fully customizable to suit the needs of any company.
When it comes to tools and technology, SEON’s features include in-depth device fingerprinting to develop comprehensive user profiles, complete data enrichment based on an email address, IP address, or phone number, and a way to check 50+ social media and online networks for related user info that will help reveal your customers’ true intentions.
- Device fingerprinting
- Whitebox machine learning
- Reverse social media lookup
- AML lookups
- Free license available
- No on-site integration
- No identity document verification (IDV) checks
- Starts at $599. Free version available with limited API calls.
Choose SEON If
- It’s important for you to be protected without introducing friction to the customer experience, and you need seamless ID confidence or AML compliance.
For verticals concerned with adhering to anti-money laundering and countering of the financing of terrorism (CFT) mandates, SEON’s AML toolkit provides risk and compliance teams with the necessary data. This enables businesses to conduct thorough AML checks, and screen users against politically exposed person (PEP) lists, sanctions lists, and other relevant watchlists.
Notable SEON customers include Patreon, Air France, Revolut, Ladbrokes, and LeoVegas.
The integration of SEON into your existing security stack comes with hands-on assistance from our fraud experts, both to facilitate the software integration itself and to recommend how to tune your risk rules to specific pain points.
These risk rules are fully customizable, giving your organization the ability to satisfy your specific risk appetite. That being said, the SEON platform comes pre-loaded with risk rules generated by our fraud experts to address pain points common to different verticals. Meanwhile, the blackbox and whitebox machine learning solutions analyze your data to suggest additional rules based on fraud insights generated from deep inside customer data.
Pros of SEON
- Device fingerprinting: Device IDs are increasingly – and more consistently – used to develop user ID confidence in the flow of international digital business. SEON’s device and browser hashing provide a way to detect fraud without friction.
- Whitebox machine learning: Get rule suggestions in human-readable language so you can test and tweak them yourself.
- Reverse social media lookup: Gather data from 50+ online signals, including LinkedIn, Twitter, Telegram, and more, to get a 360-degree view of your users.
- AML lookups: SEON’s AML solution has all the tools needed to help risk management teams stay on the right side of AML compliance.
- SEON Free: Small and medium businesses (SMBs) can utilize the power of SEON for free, with unlimited users and rules and up to 2,000 API calls per month.
Cons of SEON
- No onsite integration: Enterprise clients might need to look elsewhere if they need to control the integration with their onsite tech stack.
- No IDV checks: SEON does not have the functionality to analyze submitted ID cards and bills, so businesses that require those solutions should consider a multi-layered approach with a comprehensive software stack.
Automated Fraud Fighting for Merchants
You’ll be in capable hands with the Signifyd team. After leaving PayPal, two engineers turned their expertise to fraud software development, with a specific focus on enterprise ecommerce clients.
Signifyd now protects 10,000 online stores globally, helping them prevent chargebacks via three key products: Revenue Protection, Abuse Protection, and Payments Optimization.
Its products are specifically geared toward high volumes of transactions, and it even automates chargeback protection via a chargeback-guarantee model, where it assumes payment for chargeback admin fees.
- Automated chargeback prevention
- PSD2 compliant
- No real-time data
- Conflict of interest
- Signifyd focuses on enterprise clients with bespoke contracts. You’ll need to speak to a sales team to get an idea of pricing.
Choose Signifyd If
- You are focused on retail ecommerce and want automation when dealing with large volumes of transactions.
Pros of Signifyd
- Automated chargeback prevention: It’s not quite plug-and-play, but Signifyd is designed to run on autopilot with minimum user input.
- Covers other ecommerce fraud challenges: Return abuse and friendly fraud, among others.
- PSD2 compliant: The Payments Optimization module works with Strong Customer Authentication (SCA), which helps with compliance for EU-based payments.
Cons of Signifyd
- No real-time data: Relying on databases can work. But you’re missing a piece of the puzzle because fraudsters move fast.
- Conflict of interest: A chargeback guarantee model can be great for small merchants, but this level of automation might not be suitable for SMBs that want to keep false positives to an absolute minimum and don’t make good use of full automation.
One of the Fastest Growing Anti-Risk Vendors
Launched in 2011, Sift is now a $1 billion company, funded in part by startup accelerator Y Combinator. It offers fraud protection for a whopping 34,000 sites and apps, including world-renowned names such as Airbnb and McDonald’s.
Its key products include a Digital Trust and Safety Suite, which combines all the individual API tools into one complete solution. Then, there is a module specifically designed to authenticate users and avoid account takeover (ATO) attacks, which includes the ability to enable two-factor authentication (2FA) at the same time.
- Strong enterprise focus
- Chargeback resolution module
- Content security add-on
- Blackbox artificial intelligence (AI)
- No real-time social media checks
- No AML capabilities
- Available upon request to the sales team.
Choose Sift If
- You prioritize ease of use and have cybersecurity needs to address.
Pros of Sift
- Strong enterprise focus: While targeting the biggest companies, Sift offers plenty of products and tools for sufficient customization for fraud fighting.
- Chargeback resolution module: A great way to accept a certain percentage of chargebacks without increasing false positives while also having enough resources to fight fraudulent cases.
- Content security add-on: Sift doesn’t specifically do anti-fraud; there is also an overlap with cybersecurity. The Content Integrity product, for instance, blocks spam, scams, and malicious content on your site. Sift also offers a passwordless authentication app to streamline customer experiences and boost security hygiene.
Cons of Sift
- Blackbox AI: What you gain in ease of use, you lose in terms of understanding why the AI suggests certain risk rules.
- No real-time social media checks: An important piece of the puzzle when it comes to ID proofing, reverse social lookup isn’t available with Sift.
- No AML capabilities: Though it offers a digital assistant for PSD2 compliance, Sift does not currently have any ability to help maintain AML compliance through watchlist screening.
Enterprise-Grade Fraud Detection
Founded by Brad Wiskirchen after he wrote his idea “on the back of a napkin during a sushi lunch,” Kount soon grew into a fraud detection behemoth with 15,000 clients worldwide. Equifax acquired it in early 2021.
To assist with compliance, Kount has incorporated a global watchlist screening module and, in case of high-risk customers and transactions, a tool to simplify mandated regulatory reporting processes.
Kount’s broad focus on retail ecommerce means that service providers and merchants of all kinds, from streaming services to dating apps, can protect their bottom lines from fraud and misappropriated chargebacks.
- Covers many industries
- Automated and customizable rules
- Limited ML capabilities
- Lack of data enrichment
- Available after sales call
Choose Kount if:
- You are looking to cover various risktech needs in one go.
Pros of Kount
- Covers many industries: The variety of products available on offer means you can use Kount for a regulated industries or a tier 1 ecommerce brand.
- Automated and customizable rules: Tailor rules to automate chargeback prevention or reduce manual review time, among others.
Cons of Kount
- Limited ML capabilities: Despite custom rule creation capabilities, the machine learning features are not up to par with some newer solutions on the market, according to reviews.
- Lack of data enrichment: Your fraud prevention accuracy is as good as the data you have access to. Unfortunately, with limited data points, your fraud-fighting gets harder.
Reverse Email Lookup Specialists
An email address is a powerful data point if you know how to get the most info from it. That’s exactly what LexisNexis’s Emailage specializes in, so you can get a customer profile with an associated risk score based on an email address only.
Though Emailage doesn’t list its high-profile customers specifically, as part of the LexisNexis stack, it is a large part of one of the larger – and more expensive – end-to-end software stacks available today.
- Real-time alerts
- Easy with LexisNexis
- Not enough real-time data
- No device fingerprinting
- Available after contacting the sales team.
Choose Emailage If
- You are already an existing LexisNexis Risk Solutions customer, and more LexisNexis products fit your budget.
Pros of Emailage
- Real-time alerts: As far as email data enrichment goes, you get instant results.
- Part of the LexisNexis Risk Network: If you buy more of the suite of products, you should get seamless integration.
Cons of Emailage
- Not enough real-time intelligence: Emailage relies on email data enrichment only. Sophisticated fraudsters can still slip through the cracks.
- No device fingerprinting: As the Emailage product functions exclusively on email data enrichment, it lacks the ability to spot multi-accounting abusers without additional programs in your security stack.
- Integrates best with other LexisNexis products: Anti-fraud software in the LexisNexis stack is designed to integrate easily with other products in that proprietary stack, such as the Digital Identity Network, Firco Global Watchlist, and LexisNexis Decision Trust, but not so much with third-party vendors.
Live Data Enrichment from Several Sources
Founded in 2012, ArkOwl was developed by GitLab engineer Mike Greiling along with Rob Daline, before joining NICE Actimze’s platform-as-a-service in 2019.
ArkOwl’s key selling point? Its ability to pull email data from fresh databases such as social networking sites, WHOIS databases, webmail hosts, service providers, and more. Though its main focus is email data enrichment, it can also scrutinize and enrich data from phone numbers or IP addresses – for instance, when looking at domain information. Currently, it also scans several social media sites in order to deliver assessable user profiles.
- Real-time live social media
- Designed for integration
- Flexible pricing structure
- Not for all fraud challenges
- Less comprehensive social media checks
- ArkOwl offers flexible pricing plans, with a free trial after registration.
Choose ArkOwl If
- You want to add more open data points to a pre-existing fraud prevention stack.
Pros of ArkOwl
- Real-time live social media: The system checks several social media websites for fresh user data.
- Designed for integration: Companies requiring more comprehensive data enrichment will find ArkOwl a good addition to an existing security software stack.
- Flexible pricing structure: You can choose to pay via a monthly subscription, prepaid bundles, or pay-as-you-go (API calls).
Cons of ArkOwl
- Not suitable for all fraud challenges: Data enrichment is great as an add-on for a multi-layered approach – not so much for fully-fledged anti-fraud software.
- Less comprehensive social media checks: Currently ArkOwl scans “several” social media services to develop user profiles, which is valuable but less comprehensive for risk assessment, particularly in emerging economies.
Part of the Mastercard Group
This is a mature and well-established fraud detection software. Founded in 1997 (originally under the name Whitepages), Ekata offers global identity verification and fraud prevention. Acquired by Mastercard in 2021, Ekata has first-hand experience with enterprise clients such as Lyft, Equifax, and Microsoft.
The anti-fraud platform consists of five main products: Transaction Risk, Phone Intelligence, Account Opening, Address Risk APIs, and the Pro Insight tool to manage those functions and execute manual fraud investigations.
- Expansive databases
- Graph visualization
- Brand recognition
- Specific software stacks
- Enterprise-level contracts at an undisclosed price on the website. Speak to its sales team for more info.
Choose Ekata If
- You have an in-house manual review team that deals with high volumes.
Pros of Ekata
- Expansive Databases: Ekata’s Identity Engine assesses risk with machine learning solutions based on the data from the expansive Mastercard umbrella.
- Graph visualization: Sold as the separate Ekata Identity Graph product.
- Brand recognition: If it’s good enough for Microsoft, you should be able to trust it.
Cons of Ekata
- US-centric: While Ekata’s data on emerging markets is increasing, it still lacks a truly global database. Data enrichment based on social media could help, but the company still relies mostly on email addresses, IPs, or phone data.
- Optimized for specific software stacks: Ekata’s network of partner fraud solutions offers easy integration, but only if you are an existing customer of some specific services, most of which are suitable for specific industry use cases – but may not be suitable for all.
TruValidate (formerly Iovation)
An iGaming Staple
Don’t let the multiple name changes confuse you: TruValidate is now an offering from within the massive TransUnion catalog of digital solutions but was formerly Iovation, and has been operating since 2004. What was once fraud detection software for the iGaming niche has evolved into a series of powerful tools adaptable to any vertical.
TruValidate’s key products are Digital Insights, Identity Insights, Fraud Analytics, and Omnichannel Authentication. Together, the products develop low-friction identity confidence through device and IP intelligence, detect synthetic identity fraud, and authenticate inbound traffic from across distribution channels. Simultaneously, the platform develops insights into individual fraud issues while also streamlining the associated workflows.
- Native device fingerprinting
- TransUnion ecosystem
- Stale data
- No real-time data enrichment
- No free/batch trial
- Available upon request.
Choose TruValidate If
- You are an existing TransUnion customer needing to integrate a low-friction fraud platform with ease.
Pros of TruValidate
- Native device fingerprinting: To check the configurations of software and hardware that users rely on to connect to your website.
- Part of the TransUnion ecosystem: While all the products are sold separately, you can expect seamless integration between all TransUnion’s services.
Cons of TruValidate
- Stale data: A massive database is useful, but sometimes having fresher data is better, even if you have less.
- No real-time data enrichment: You’re relying on an extremely large database but not on open source info such as social media data.
- No free/batch trial: Prepare for a lengthy onboarding via multiple sales calls before you can test TruValidate.
Protection, Seamlessness, Personalization
Founded in Australia in 2005, ThreatMetrix was later acquired by the LexisNexis Risk Solutions platform, which also includes the aforementioned Emailage. By leveraging the huge databases of LexisNexis’ parent company, RELX Group, ThreatMetrix’s trust decisions and fraud detection are informed by 78 billion records, with 270 million transactions being processed and analyzed daily.
The main products offered by the software suite are designed to be a complete fraud prevention platform, leaning on the massive data capabilities of the LexisNexis network inside the LexID product. This function combines current and historical data to develop a comprehensive user risk assessment.
- ThreatMetrix Consortium
- On-site integration
- ThreatMetrix Mobile
- Less payment flexibility
- Very specific
- Not currently listed online. Contact the sales team for a quote.
Choose ThreatMetrix If
- You use other LexisNexis products and would like to add a fraud prevention platform.
Pros of ThreatMetrix
- ThreatMetrix Consortium: Connecting customers in vertical-specific communities to share insights and collected fraud data.
- On-site integration: ThreatMetrix offers to send a human fraud partner to support the integration of the product into your existing architecture. The company also offers Professional Services (consultancy to help you get your fraud-fighting strategy off the ground).
- ThreatMetrix Mobile: A software development kit specifically to improve the security of the mobile device channel.
Cons of ThreatMetrix
- Part of a larger software portfolio: ThreatMetrix does not handle all aspects of fraud prevention in a customer journey, so modules like payment-specific security must be purchased separately and integrated, each with its own respective price tag.
- Less payment flexibility: ThreatMetrix does not currently have a free trial option, and its focus on enterprise-level businesses that will purchase multiple suites from the LexisNexis stack puts it at a decidedly high price point.
Modern, Modular Platform for Growth
As Visa’s proprietary payment fraud solution, the expectations for this software are naturally high. Cybersource was founded in 1994, and pioneered online payment as soon as ecommerce became a reality, then vastly expanded its capabilities by acquiring Authorize.net in 2007.
In particular, the unified payment solution allows businesses to easily transition between payment models, like Buy Now Pay Later (BNPL), as well as take on new forms of payment currency with confident fraud protection. Other granular modules in the suite are dedicated to helping merchants grow their reach, with capabilities for currency conversion, global tax compliance, and customer lifetime management.
- Growth-specific software modules
- Dynamic data analysis
- International compliance
- Large business focus
- No real-time data
- Because Cybersource does not currently publish its pricing online, you’ll have to contact the sales team for a quote.
Choose Cybersource If
- You’re looking to streamline or diversify your payment models and scale up.
Pros of Cybersource
- Growth-specific software modules: Cybersource has leaned into being a provider for companies upscaling their growth, with modules specifically for diversifying payment models and streamlining them, with super low friction, 3DS-backed, click-to-pay deployment.
- Dynamic data analysis: The fraud detection module constantly updates its ML statistical models and dynamically applies the best model for each transaction, smoothening automation.
- International compliance: Offers both the ability to collect international payments with its currency conversion module and the confidence that you are staying compliant with local mandates with the Global Tax Calculator.
Cons of Cybersource
- Large business focus: Though Cybersource offers a relatively complete payment fraud prevention package, its focus is on businesses moving towards international diversification and omnichannel models, which smaller businesses will find untenable.
- No real-time data: Because the software leverages Visa’s truly massive yet historic database of ID and transaction data, there is always a chance some of the data could be stale.
Affordable Security for Emerging Markets
FraudHunt was founded with the goal of providing emerging markets with a lightweight and affordable fraud prevention option. To achieve this, the founding team of data analysts and developers took proven methods, focusing on device fingerprinting, and developed a platform that provides a dynamic security solution for ecommerce marketplaces of all sizes and verticals. Notable customers include Crediexpress and DataBrain.
FraudHunt’s risk prevention solution revolves around scoring incoming traffic based on risk points in device and browser fingerprints. Each user gets assigned a score based on whether or not they flip certain triggers, such as proxy detection and identifying data from operating systems, browser information, and their behavioral patterns inside the marketplace.
- Competitive pricing
- Fingerprint ID module
- Limited native analytics
- Not for scaled businesses
- FraudHunt offers a range of pricing structures, starting at as little as $25 per month for the Bronze package and rising to $2,500 per month for up to ten million unique users.
Choose FraudHunt If
- You’re in an emerging market looking for a cost-effective but efficient solution.
Pros of FraudHunt
- Competitive pricing: As the company focuses heavily on emerging markets, both the integration process and monthly premiums are relatively low. The company also offers specialized packets for extenuating financial circumstances.
- Fingerprint ID module: FraudHunt’s flagship product leans heavily into bot detection to prevent ATOs, credential stuffing attacks, affiliate scams, and content fraud.
- Accessibility: The main software offers Google Analytics integration capabilities and an intuitive reporting tool.
Cons of FraudHunt
- Limited native analytics: FraudHunt offers a streamlined Google Analytics integration to break down its Fingerprint Key user profile data to determine things like suspiciously repeated device hashes. While this may be convenient for some, many products provide such insights within their platforms to smoothen automated processes.
- Not optimal for scaled businesses: In FraudHunt’s effort to be an affordable fraud solution for emerging markets, its product offers less automation than an enterprise-level business would require and less advanced lookups for AML/PSD2 compliance. Even medium-sized companies will likely need another product to complement their security.
Dynamic Automation to Suit Your Preferences
The American Express company’s fraud prevention solution is Accertify. The company touts itself as a true end-to-end fraud solution provider, from customer authentication to SCA optimization, even providing chargeback management for those inevitable occurrences.
Accertify’s main fraud detection offering is called Accertify Digital Identity. To develop insights, the machine learning algorithms reference databases of community user behavior analytics and device intelligence to decide how to label each user. This is coupled with chargeback and reputational data from across the massive network of ecommerce partners – which also inform Accertify’s day-one strategies so that results can be seen as soon after integration as possible.
- Dynamic automation
- Huge databases
- End-to-end capability
- No social media enrichment
- Enterprise-level focus
- You have to contact the sales team for a quote and demo.
Choose Accertify If
- You are an enterprise and appreciate access to huge databases.
Pros of Accertify
- Dynamic automation: Accertify’s automated scoring system can be adjusted to include more or fewer manual reviews, depending on the customer’s risk appetite.
- Huge databases: As an Amex subsidiary, Accertify draws data points like IP reputation data from a huge network of legacy ecommerce providers.
- End-to-end capability: Accertify’s main offering includes modules like chargeback management and an entire international payment gateway, with additional compliance modules available, so interested companies can potentially ingest the entire infrastructure.
Cons of Accertify
- No social media enrichment: As the company is supremely confident (understandably) in the scope of its databases, it does not look into alternative or real-time data, such as digital footprints. This can lead to less conclusive reports.
- Enterprise-level focus: Smaller businesses will find the price point high, as the vendor is focused on legacy companies.
SEON’s fraud APIs are highly configurable for various business use cases to match your needs, with machine learning, unique digital footprint analysis and granular reporting.
Speak with an Expert
How to Choose Fraud Detection Software
As fraud continues to hurt companies’ bottom line, the fraud detection software market continues to grow. This can make it challenging to choose the right solution for your risk challenges.
This is why it’s important to consider the following crucial points:
- Detection features: Check that the software offers the right features based on your needs, whether it’s identity fraud, payment fraud, or account protection.
- Integration flexibility: While most fraud detection software is available as a SaaS model, you might also want to consider on-site integration.
- Payment model: Beware of long contracts that lock you into the wrong price plan. Make sure you can trial the software first, or at least have a short term paid option to test it.
- Support and documentation: Ensure your vendor offers free support and customer service, especially at the time of integration. The documentation should also be good enough to answer your questions without having to go through support.
We hope this comparison will provide a good primer on the topic and that you’ll soon get started on the road to a safer, healthier online business.
Frequently Asked Questions
The more you know about your organization’s fraud issues, infrastructure, and risk appetites, the easier it will be to choose the best software solution. After ascertaining these points, consider features like customizable risk rules, device fingerprinting, alternative data scoring, real-time data assessment, and convenient machine learning systems.
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.
Legacy fraud detection software companies tend to lock clients into costly, multiyear contracts. However, newer solutions favor the more flexible way of paying per API call, where the price varies based on your usage.
A good fraud tool should let you automate risk management by calculating risk and declining, accepting, or letting you review user actions. The risk is calculated with data, which is why data enrichment, social media lookup, and device fingerprinting can help you complete the picture.
- Markets and Markets: Fraud Detection and Prevention Market worth $65.8 billion by 2026
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