Ecommerce Fraud Prevention Tools & Software: Which is Right for Your Online Business?
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- June 22, 2021
- 15 minutes
Are you in the market for a fraud tool that can help reduce risk for your online store? If you need help preventing fraud and the resulting chargebacks, we have a helpful list of available options.
Before You Buy, Consider This ...
The following list of fraud tools can help you detect potential fraudsters and block transactions that will likely result in chargebacks. However, there is no single solution that can completely eliminate risk.
Fraud tools are typically designed to prevent true criminal fraud, not friendly fraud (illegitimate chargeback requests) or basic customer disputes. Because nothing can account for unscrupulous consumer behavior or misunderstandings, you’ll still receive some chargebacks—no matter how powerful your pre-sale tool is.
As a result, you’ll need the following tools in addition to any of the pre-sale fraud tools listed in this article if you want the biggest boost to your bottom line:
- Prevention alerts and Visa Merchant Purchase Inquiry (VMPI) to resolve disputes after the transaction has been processed but before a chargeback is issued
- Tools offered by your processor or gateway like AVS and CVV to help avoid liability for Visa’s allocation disputes (learn why here)
- A blacklist to detect customers who have previously disputed a purchase
- Chargeback data broken down by different variables to determine why customers are charging back so you can resolve the underlying issues
- Technology to respond to chargebacks and recover lost revenue
On the surface, it may seem like you’ll need a lot of different service providers to create a comprehensive risk management strategy. While you do need multi-layer protection, it isn’t as challenging to acquire as it may seem.
Midigator® is an all-in-one solution — access all the tools you need to prevent and fight chargebacks from a single platform. Choose a pre-sale fraud tool from the list below and Midigator will be the perfect compliment for post-sale chargeback management and prevention.
Lastly, some service providers reimburse merchants if they receive a chargeback on an approved transaction. However, this reimbursement policy usually comes with certain restrictions, meaning merchants won’t be refunded for all the chargebacks they receive. Therefore, you’ll still need a system in place to fight the chargebacks not covered by the guarantee if you want to recover your revenue.
TOOLS AND SERVICES TO HELP PREVENT ECOMMERCE FRAUD
Review all profiles in the list below. Or, click a specific vendor’s name to visit their profile.
CashShield
CashShield offers mid-to-large enterprises comprehensive protection against fraud risks, including account takeovers, promo abuse, unauthorized payments, and peer-to-peer transfers. The machine-automated solution functions without the need for any data scientists or fraud analysts, and the algorithm is able to self-learn in real-time.
With an automated solution, CashShield allows merchants to scale on demand during promotional periods without effort and increase operational efficiency, growing revenue potential while expanding in riskier markets.*
Website: CashShield.com
Key Features:
- Provides real-time decisions to accept or reject a transaction, bypassing the need for manual reviews
- Learns on the fly, independent of historical data, to capture new forms of fraud without a trace
- End-to-end protection deployed at all entries vulnerable to fraud
Headquarters: Singapore
Dedicated Account Manager: Yes
Clients: Card-not-present merchants
Volume Requirements: 100 transactions a day
Contract Terms: No contract requirements; cancel any time
Integration: Connect via an API; integrate within 1-3 business days
ClearSale
With almost two decades of experience as the largest card-not-present fraud prevention operation worldwide, ClearSale has the largest fraud prevention team and most advanced technology available on the market today. The company’s “secret recipe” combines the best of big data analytics, statistical intelligence, human capital, and innovative technologies.
When you work with ClearSale, you work with a powerful team of fraud experts who have honed their skills in the trenches of the world’s most challenging markets. Through the years, ClearSale have innovated, optimized, and perfected its processes to empower you to eliminate fraud, sell more, and make your customers happier.
Website: clear.sale
Key Features:
- Highest approval rates and lowest false decline rates in the industry
- First company to offer chargeback guarantees – and the largest to still do so.
- Only company offering performance-based pricing and chargeback guarantee options.
Headquarters: USA
Dedicated Account Manager: Yes
Clients: Card-not-present merchants
Volume Requirements: None
Contract Terms: No contract requirements; cancel any time
Integration: Integration through shopping cart and ecommerce platform extension completed in 10 minutes; custom integration via API completed in less than 10 hours
Ekata
Ekata provides global identity verification solutions to help companies identify legitimate customers, prevent fraudulent transactions, and smooth new customer account creation. Pattern recognition, predictive analytics, and machine learning are applied to the five core consumer attributes — email, phone, person, physical address, and IP — to deliver unparalleled coverage and accuracy, all backed by 20 years of sophisticated data science.
Website: Ekata.com
Key Features:
- Identity Check API provides a real-time, predictive confidence score derived from 70+ data signals, machine learning, and millions of daily transactions
- Identify Graph houses five billion global identity records to provide a single cross-border identity verification solution
- Pro Insight analyzes the five core data attributes of a transaction, and has the ability to to cross validate name, phone, email, and address
Headquarters: USA
Dedicated Account Manager: Yes
Clients:card-not-present merchants
Volume Requirements: None
Contract Terms: 12-month minimum for identity verification; pay-as-you-go for data validation
Integration: Integration via a fraud platform with a direct connection completed instantaneously; integration into existing business system through API completed in one week or less; integration into existing business system through a deep link completed in 15 minutes
Emailage
Emailage helps companies reduce online fraud. The predictive online fraud risk score allows companies to assess risk using email address reputation, behavior, and metadata. With Emailage, you get instant access to fraud signals associated with over 50 million unique email addresses connected to IP addresses, domain names, phone numbers, and more. You’ll benefit from this massive network because positive signals from these elements can help you approve more customers and stop more fraud. Emailage help companies fight back against fraudsters, scale into new markets, and focus on what matters: growth.
Website: Emailage.com
Key Features:
- Real-time risk assessment
- Network of over 50 million unique email addresses
- Deep digital identity verification for every CNP transaction
Headquarters: USA
Dedicated Account Manager: Yes
Clients: Card-not-present merchants
Volume Requirements: Available upon request
Contract Terms: Available upon request
Integration: Fraud prevention strategist helps determine best way to use the product; integration options include portal usage, API, or SFTP; integration usually takes two to four weeks
Eye4Fraud
Eye4Fraud instantly screens, verifies, and guarantees all your online and phone orders so you can sell and ship with confidence anywhere in the world. Eye4Fraud aims to accommodate every business’s unique sales process, seamlessly integrating our technology with your shopping cart. Eye4Fraud will reduce payment processing risk by identifying fraud orders before they are shipped. The technology also helps increase sales by approving the good transactions you receive.*
Website: Eye4fraud.com
Key Features:
- Accommodation: Extra steps are taken to accommodate your unique business and order process; easy and direct access to customer support–no ticket necessary
- Integration: Easy integrations with most popular shopping carts, payment gateways, and custom shopping carts
- Verification: Sophisticated technology approves the majority of online and phone orders instantly; manual verification team makes sure every good order gets approved
Headquarters: USA
Dedicated Account Manager: Yes
Clients: Card-not-present merchants
Volume Requirements: None
Contract Terms: Month-to-month
Integration: Integration through shopping cart extension completed in 15 minutes; integration to custom shopping cart completed in 3-12 hours
Feedzai
Feedzai provides a powerful decision engine that uses a combination of machine learning, rules, and hyper-granular “Segment of One” profiling to make real-time decisions on any risk or fraud use case–transaction scoring for fraud detection and prevention, anti money laundering, account opening, and much more. As a data-agnostic system, Feedzai’s platform can also work on areas like employee abuse, launch abuse, or account takeover. In summary, Feedzai can be applied to any real-time decision scenario with structured or semi-structured data.
Website: Feedzai.com
Key Features:
- Hundreds of Segment of One profiles for every single transaction allow for the highest level of granularity which enables Feedzai to achieve an unparalleled level of accuracy
- OpenML Engine provides close integration with many commonly used data science and machine learning tools, empowering data scientists to leverage Feedzai’s fraud-fighting innovations on their own terms
- Rapid build, train, test and deploy environment’s blazing speed allows testing of far more models at a time, deploying highly bespoke and optimized models to live much quicker than expected
Headquarters: USA
Dedicated Account Manager: Yes
Clients: Card-present and card-not-present merchants
Volume Requirements: Available upon request
Contract Terms: Available upon request
Integration: Provide 6-12 months’ worth of historical data; integrate via API; integration time varies but is usually a few months or less
Forter
Forter is an eCommerce fraud prevention solution that instantly analyzes consumer behavior at every stage of the customer journey to stop fraud and abuse in real-time. Forter’s researchers are constantly investigating new tactics employed by fraudsters and inputting their findings into Forter’s machine learning models to protect against potential threats. Forter guards against attack methods beyond transactional fraud, including account takeover, return abuse, coupon abuse, and loyalty program abuse.*
Website: Forter.com
Key Features:
- End-to-end solution provides fraud decisions at every stage of the consumer lifecycle, from account creation to checkout and beyond
- Delivers completely automated, accurate, real-time fraud decisions without the need for manual reviews, ensuring scalability as your business grows
- White-glove service uses a combination of artificial intelligence and human analysis to pinpoint and address each client’s specific pain points across online and mobile platforms in multiple industries
Headquarters: USA
Dedicated Account Manager: Yes
Clients: Card-not-present merchants
Volume Requirements: Available upon request
Contract Terms: Available upon request
Integration: Merchant meets with Forter’s integration architect, a risk analyst, a product manager, and an account manager for onboarding; full integration usually completed within 3-4 weeks, sometimes sooner
Fraud.net
Fraud.net is collaborative, AI-powered fraud prevention, currently protecting over 2% of all digital commerce. It combines collective intelligence, dynamic machine learning, and rule-based decision engines to detect fraud in real-time at scale. Fraud.net is a cloud-based system, offering a full and transparent presentation of data, statistics, and contextual variables to help merchants reduce fraud and streamline decision-making processes. Fraud.net works with leading brands in the e-commerce, digital payments and lending, travel, and marketplace sectors.
Website: Fraud.net
Key Features:
- Reduce losses from identity theft, synthetic identities, account takeover and other types of fraud
- Enrich customer data to improve risk assessments of new account applications and to deepen customer relationships
- Reduce customer friction
Headquarters: USA
Dedicated Account Manager: Yes
Clients: Card-present and card-not-present merchants
Volume Requirements: Merchants with more than 100,000 transactions per month get the most benefit
Contract Terms: 1-year initial term, priority to merchants who will likely be long-term partners
Integration: Integrate through API; coding takes about 1 day, but 30 days are recommended for planning; onboarding involves calls to discuss details and align expectations
IPQualityScore
IPQualityScore provides anti-fraud services that cover the whole spectrum of preventive fraud management. Proactively prevent fraud with IPQualityScore’s suite of anti-fraud tools including real-time transaction fraud scoring, proxy & VPN detection, bot detection, device fingerprinting, and email verification services. Detect high-risk users and transactions in real time to prevent chargebacks, fraudulent transactions, and quality issues.
Website: IPQualityScore.com
Key Features:
- Proxy/VPN Detection & IP Filtering: Identify high-risk transactions by detecting proxies, TOR, VPNs, bots, and other high-risk connections that are primarily used to conduct fraudulent activities.
- Email Verification: Detect invalid email addresses, high-risk emails, or those that belong to a temporary or disposable email service frequently used by fraudsters.
- Device Fingerprinting: Analyze over 200 data points from a user’s device, as well as transaction details, to determine if a user is intentionally spoofing their identity or exhibiting any patterns of fraudulent behavior.
Headquarters: USA
Dedicated Account Manager: Yes
Clients: Card-present and card-not-present
Volume Requirements: None
Contract Terms: None
Integration: Integration completed in 10-30 minutes; self-serve tools can integrate into any platform, app or website; documentation of coding examples and best practices provided; support team is available to assist with integration if needed
Kount
Kount pioneered the use of machine learning in reducing fraud, protecting online businesses, and increasing revenue. Because the company develops and owns the core technology stack, Kount delivers fast, accurate decisions in just a fraction of a second. While sophisticated, Kount was designed to be simple to implement and simple to use for easy fraud detection and dramatic improvements to bottom line profitability. The technology offers protection in every digital interaction: account takeover, account creation, payment transactions, and account login.
Website: Kount.com
Key Features:
- Artificial intelligence and machine learning
- Customer experience coupled with extensive industry knowledge
- Comprehensive fraud platform
Headquarters: USA
Dedicated Account Manager: Yes, for enterprise merchants
Clients: Card-not-present merchants
Volume Requirements:Varies by merchant
Contract Terms: Standard contract terms are three years
Integration: Integration via risk inquiry service API and a device data collector; software development kit (SDK) provided to make real-time API calls; integration usually completed within two days to two weeks (18-20 development hours); access to testing environment first, then production environment
MaxMind
MaxMind’s minFraud service reduces fraud by providing real-time fraud analysis, post-query alerts, and contextual data to inform manual review, support automated workflows, and aid risk modeling.
Website: MaxMind.com
Key Features:
- Provides a minFraud riskScore for every transaction that draws on machine learning, human insights, and over one billion of the most recent scored transactions flowing through the minFraud network
- Utilize 50+ output data points including data on IP geolocation, device, email, credit card, and more to feed into risk models and manual review process
- Sends alerts when the risk level of a previously scored transaction changes as a result of new data from the 5,000+ global merchants in the minFraud network
Headquarters: USA
Dedicated Account Manager: Depends on volume
Clients: Card-not-present merchants
Volume Requirements: Minimum requirements for some custom agreements
Contract Terms: Minimum requirements for some custom agreements
Integration: Integration varies, but APIs and developer documentation are available for those interested in self-service integration; full integration can take as little as two hours
NoFraud
NoFraud is an online fraud prevention company. The platform screens transactions for fraud and delivers simple, actionable results: pass, fail, or review. A cardholder verification process enables NoFraud to validate high-risk orders and provide merchants with a high approval rate.*
Website: NoFraud.com
Key Features:
- High approval rate with Cardholder Verification
- Ability to screen phone orders
- Pre-gateway integration option
Headquarters: USA
Dedicated Account Manager: Yes
Clients: Card-not-present merchants
Volume Requirements: None
Contract Terms: Month-to-Month
Integration: Integrates with almost every eCommerce platform either via an app, gateway emulator, or API integration; 10 minute integration for Shopify or other hosted platforms; 2-3 days for custom platforms.
Pindrop
Pindrop is the pioneer in voice fraud prevention and authentication. Pindrop’s multi-factor solutions use every facet of a call — audio, voice, and metadata — to distinguish between fraudulent and legitimate callers. Proprietary technologies are used in combination with machine learning and data from 650 million phone calls per year to provide highly accurate results that help reduce fraud losses and authentication expenses. Pindrop has been selected by the world’s largest banks, insurers, brokers, and retailers, detecting over 80% of fraud, even for attackers never seen before.
Website: Pindrop.com
Key Features:
- Phoneprinting™ technology, the heart of Pindrop’s anti-fraud solution, analyzes the audio of a call to help identify malicious behavior and verify legitimate callers.
- Deep Voice™ biometrics run a friction-free analysis throughout the lifecycle of a call, from IVR to agent, identifying and analyzing repeat callers.
- Toneprinting™ technology authenticates callers by analyzing unique tones and features of a device to identify robotic dialing and account takeover patterns
Headquarters: USA
Dedicated Account Manager: Yes
Clients: Card-not-present merchants
Volume Requirements: None
Contract Terms: 3 year commitment
Integration: Integration through an API call or on-site call capture technology with audio forensics; integration varies depending on solution, environment, and scale; some integrations are complete in a matter of weeks
Precognitive
Precognitive is a hybrid fraud prevention and cybersecurity company. It’s Decision-AI platform focuses on solving complex fraud threats. Use cases include end-to-end credential stuffing or account takeover prevention, complex card-not-present fraud, and mitigating high-value account creation fraud. The platform monitors visitor interactions of humans and bots over many sessions and constructs a full timeline of events. This helps identify cybercrime attacks at the scouting stage and prevent threats before they start. The technology is industry agnostic, but is geared towards financial institutions, travel, hospitalities, and enterprise eCommerce retailers.
Website: Precognitive.io
Key Features:
- Advanced behavioral analytics and behavioral biometrics
- Automated machine learning pipelines
- Intelligence and tracking that dynamically adjusts to device types
Headquarters: USA
Dedicated Account Manager: Yes
Clients: Card-present and card-not-present merchants
Volume Requirements: Varies by use case, enterprise-level clients only
Contract Terms: 2 year agreements
Integration: Required backend API, software development kit (SDK) integration for mobile, JavaScript integration for web; standard integrations take 5-30 days and custom integrations take 30-60 days
QPS
Quatrro Processing Services (QPS) provides best-in class, proprietary and non-legacy fraud prevention tool, CNP Secure, to eCommerce merchants. CNP Secure includes an aggregator model and identity protection solution with multiple transactional variables to support merchants with 24/7/365 transaction monitoring. The end-to-end fraud protection solution has been tailor-made to enhance order acceptance rates while combating chargeback. CNP Secure derives fraud score on the basis of Chargeback Propensity Rate (CPR) by analyzing a powerful database, highlighting customer’s behavior and negating the chargeback propensity. CPR comes with a holistic approach to help merchants stop fraud before it happens.
Website: QPSInterational.com
Key Features:
- Open API fostering an easy and secure system integration
- Advanced algorithm and behavior analytics for assessing fraud patterns and trends
- Proactive chargeback management approach with 100% anomaly detection model
Headquarters: USA
Dedicated Account Manager: Yes
Clients: Card-present and card-not-present merchants
Volume Requirements: 150,000 transactions per month
Contract Terms: Tailor-made contractual options available
Integration: Integration requirements depend on client’s environment; full integration within a week
Sift
Sift applies machine learning to prevent all types of online fraud and abuse. Customers leverage the company’s accuracy to automate decisions and use the platform to investigate and report on abuse types such as payment fraud, account takeover, spam, scams, and more.
Website: SiftScience.com
Key Features:
- Machine Learning: An ensemble of algorithms and models including regional, network, and custom to provide accurate results around both good and bad users
- Investigative Console: Tool included for fraud teams to investigate users, automate processes, and report on the total impact of fraud on businesses
- Global Network of Customers: Anonymized learnings shared across customers that give a 30% accuracy boost for users
Headquarters: USA
Dedicated Account Manager: Yes
Clients: Card-present and card-not-present merchants
Volume Requirements: 150,000 transactions per month
Contract Terms: Tailor-made contractual options available
Integration: Integration requirements depend on client’s environment; full integration within a week
Thirdwatch
Thirdwatch is an artificial intelligence (AI) driven startup that aims to prevent fraud in eCommerce by providing companies with a vital, technology-enabled solution that flags risky transactions. It uses behavioral analysis, elastic linking, proxy detection, machine learning, device fingerprinting, and more. Thirdwatch’s AI flagship product, ‘Mitra,’ detects fraud on eCommerce platforms in real time by identifying and separating genuine transactions from fraudulent ones.
Website: thirdwatch.ai
Key Features:
- Data Capture and Device Fingerprinting: Our flagship product ‘Mitra’ captures more than 200 parameters to generate unique fingerprints for each and every transaction.
- Identity Cluster: Thirdwatch matches different endpoints based on each transaction into a cluster and then compares it to the global ecosystem to generate an identity cluster, that shows the real time connectivity of a user.
- Consumer Trust Score (CTS): Thirdwatch leverages machine learning algorithms, behavioral analysis, and present transaction parameters like cost, shopping area, the device used, payment mode, and more to calculate an accurate Customer Trust Score.
Headquarters: India
Dedicated Account Manager: Yes
Clients: Card-present and card-not-present merchants
Volume Requirements: None
Contract Terms: Determined on a client-by-client basis, negotiated after the 30-day trial period
Integration: Integration via API completed in 72 hours to 2 weeks; integration via plugin to Shopify, Magento, or WooCommerce completed in 20 minutes to 3 hours
Trulioo
Trulioo is dedicated to bolstering the fight against financial crime, fraud, terrorism, and other nefarious activities. Through GlobalGateway, Trulioo’s bank-grade electronic identity verification platform, businesses can instantly verify more than 4.5 billion consumers and 250 million businesses, screen them against international watch lists, and verify them with use of AI technology that analyzes and authenticates ID documents from nearly every country in the world.
Website: Trulioo.com
Key Features:
- Global coverage via hundreds of trusted data sources to mitigate fraud
- Ability to layer electronic identity verification, mobile network number verification, fraud data, document verification, facial recognition technology, and anti money laundering checks through one integration
- Flexible integration options and comprehensive results from multiple sources, not just a score
Headquarters: Canada
Dedicated Account Manager: Yes
Clients: Card-present and card-not-present merchants
Volume Requirements: Varies
Contract Terms: Determined on a case-by-case basis
Integration: Integration through an API; process takes anywhere from one week to one month
Zumigo
Zumigo provides authoritative mobile identity and location information to seamlessly verify authentic users while preventing fraudsters from creating fake accounts, stealing user credentials, impersonating valid customers, and completing costly transactions. Founded in 2009, Zumigo is a trusted partner of the largest mobile operators, financial institutions, and retail merchants. Zumigo is backed by some of the leading VC’s including Aligned Partners, Wells Fargo Ventures, Intel Capital, and Capital One Growth Ventures.
Website: Zumigo.com
Key Features:
- Mobile identity and location directly from the mobile operator, ensuring the data can’t be spoofed.
- Suspicious account and phone activity, such as call forwarding activation, number porting and SIM card changes.
- Proximity and distance between a user’s mobile phone and associated transactions, such as a POS or street address.
Headquarters: USA
Dedicated Account Manager: Yes
Clients: Card-present and card-not-present merchants
Volume Requirements: 100,000 transactions per month
Contract Terms: One-year term
Integration: Integration completed in three to four weeks; consent language and use-case presented to mobile carriers for approval; secure https integration to published APIs
Don’t see your company listed here?
Email details about your services to Contact@Midigator.com — we’d be happy to include you too!
