Fraud Detection Software isn’t just a bundle that needs to be installed on your system to spot a fraudster. Information sharing is a retailer’s biggest weapon. There’s a tonne of information that is delivered as a part of a platform that includes access to a live fraud event database.
Fraud detection systems need to be updated to account for newly discovered scams. But, unfortunately, most sellers are focussed on their trade and don’t operate an IT-first approach. Thus, system considerations are often pushed down the priority list, and in small businesses , there might not even be a professional systems administrator employed to manage software.
Who Needs Fraud Detection Softwares?
Businesses that sell online are apparent targets of fraudsters, and these are businesses that can easily apply software solutions to fraud prevention. However, even brick-and-mortar businesses can benefit from fraud detection software.
The most significant damage from commercial fraud occurs at the payment phase, and physical outlets rely on credit card processing almost as much as online sellers. When incorrect charges are discovered, it is the seller that has to absorb the loss. Too many refunds issued by payment card providers can result in the business incurring fees, delayed payments or even being banned from accepting cards for payments. Without the ability to process card payments, most real-world sellers would be unable to operate their business.
On-Site software can quickly get out of date, and that makes business vulnerable to new scams . For this reason, it is better to look for a SaaS platform which includes software management and will apply all updates automatically without the account holder’s information.
Fraud detection software provides companies with the tools to evaluate and identify fraudulent activity and transactions in order to prevent fraudulent access or financial fraud.
Top 8 Fraud Detection Service Providers
We took a detailed look at the highest-rated fraud detection companies in operation today, and developed a comprehensive rundown of some of the leading service providers.
1.Signifyd
G2 ranks Signifyd as the #1 eCommerce fraud protection service available.
Signifyd provides an end‑to‑end Commerce Protection Platform. This platform leverages their Commerce Network to maximise conversion, automate customer experience, and eliminate fraud and customer abuse for retailers.
Signifyd uses big data and machine learning to provide a 100% financial guarantee against fraud and chargebacks on approved orders. This effectively shifts the liability for fraud away from eCommerce merchants, allowing them to increase sales and open new markets while reducing risk.
Major Clients : EBay , Samsung , Walmart , Lacoste
Pros
✅ Integrates seamlessly and is easy to use
✅ The Payments Optimization module works with strong customer authentication (SCA), which helps with compliance for EU-based payments
✅ Transactions are generally approved in seconds
Cons
❌ It can be very costly for an enterprise-type customer
❌ No real-time data
❌ Sometimes the human (non-automated) review process can take longer to complete in cases where additional verifying information is needed from the customer
Pricing: Call for a free quote
Extra Perks:
👉APIs
👉Free Demo
👉Automated Chargeback Prevention
2.ClearSale
ClearSale sorts out fraud detection without too much hassle. This is the ideal solution for small eCommerce businesses because it integrates on-demand with the popular online selling platforms. These include WooCommerce, BigCommerce, Shopify, PrestaShop, Magento, and Shift4 Shops.
Key Features:
- eCommerce platform integration
- Automatic fraud detection
- Transaction prices
- For businesses of all sizes
- Chargeback insurance
The integrations of ClearSale make it a clear winner for any small eCommerce concern that just doesn’t have time to manage a complicated fraud detection program. In addition, the service costs nothing to set up, and you don’t have to spend too much time working out which subscription plan you are going to go for.
The direct damage that a payment fraud act will cause you is in chargebacks. Also, remember that excessive chargebacks can get you banned by the payment processor. ClearSale puts in every effort to prevent fraud-related chargebacks because they have to pay you back in full for any chargeback in one of its plans, so they are very confident that they can eliminate this business problem.
ClearSale has also attracted large businesses and includes Walmart, Staples, Chanel, and Calvin Klein among its user community.
ClearSale offers two charging models, and both of these have straightforward prices without extra hidden charges. The first option is a KPI-based price. This is like a chargeback management plan, and you get a refund if the number of chargebacks in the month exceeds your agreed limit. However, that’s a refund on the monthly charge and no compensation for the total amount of chargebacks. In other words, this is a service level agreement.
The second plan just takes a percentage fee off each transaction – which is 0.4 to 0.5 percent, depending on the product type. This works out more expensive per transaction than the KPI-based plan. However, this second plan is a chargeback insurance scheme, and ClearSale gives you total compensation for any chargebacks.
Major Clients : Under Armour, Victoria’s Secret, Bath & Body Works
Pros
✅ Performs automated fraud detection as part of the payment processing task
Doesn’t require any expertise to use
✅ Integrates easily with the major eCommerce platforms
✅ No setup fees
✅Attractive and easy to understand system dashboard
✅30-day money-back guarantee
Cons
❌Half a percent of the sales price can be a big chunk out of your profits if you operate thin margins.
Pricing: Two-tiered payment plan, with a free trial period for either.
Extra Perks:
👉Free Trial
👉Plug and Play Service
👉Real-Time Monitoring
3.DataDome
DataDome protects mobile apps, websites and APIs from online fraud, including scraping, scalping, credential stuffing, and account takeover.
They also protect against layer 7 DDoS attacks and carding fraud. Their AI-powered bot detection engine processes more than one trillion pieces of data every day, from 25 worldwide points of presence. This helps protect some of the world’s largest global eCommerce businesses in real time.
DataDome is easily deployed and is compatible with 100% of web infrastructure technologies, thanks to strong technical and business partnerships with market leaders. It runs anywhere, in any cloud, and is compatible with multi-cloud and multi-CDN setups.
Major Clients: Mc Donald’s , Reddit, The New York Times
Pros
✅ Seamless, instinctual interface without a lot of noise
✅ Customizable rulesets with excellent onboarding
✅ Provides SDK (software development kit) integrations that simplify coding obfuscations and coupling challenges
Cons
❌ No ‘out of box’ API augmentation (manages internal systems only)
❌ Software is sensitive; can lead to false negatives
❌ No APIs with intro platform
Pricing: Entry level price of $2,990
Extra Perks : Free Quote
4.SEON
SEON helps its customers uncover fraud patterns and generate new revenue streams. Intelligent risk scoring with AI and machine learning adapts to your business risk evaluation. This means you get full visibility and complete control over every interaction, order, account, transaction, and opportunity.
Major Clients: Game Vision , Air France, Patreon
Pros
✅ Seamless integration with a wide range of data points
✅ Detailed IP geolocation checks, screening of personal data for fraudulent indicators, checks social media profiles, and the rules management system is quite easy to use without specific knowledge
✅ Platform is extremely well organised
Cons
❌ IP checks could be more precise with mobile IPs
❌ Loading customers into the system can take a while
❌ Lacks the means to export a full blacklist or internal scoring data points
Pricing: Starting at €299
Extra Perks:
👉APIs
👉Free Demo
5.Sift
Sift operates the Digital Trust and Safety Suite. This platform of online services includes account takeover protection, payment fraud prevention, and content protection.
Key Features:
- Account takeover detection
- Payment fraud detection
- Content protection
The payment fraud protection services include chargeback management and dispute handling automation. This service is used by some enormous organizations, including Twitter and Airbnb. The system consists of a machine learning module that establishes normal behavior for all your customers and individual accounts. This facility helps to speed up and tailor the Sift fraud detection process.
Sift maintains a database of fraudulent activities, and that gives them an alert list of IP addresses, names, addresses, and other identity markers that can quickly shine a search light on fraudsters.
The database is also distilled to provide constantly updated fraudulent activity indicators. New frauds happen in waves. Either one team perpetrates its recent attack as widely as possible as quickly as possible, or one well-known con gets learned by many actors and then spreads around the world. Sift knows all of those tricks and spots new fraud strategies as soon as they appear.
Major Clients: Doordash, Twitter , Bloackchain.com
Pros
✅ Easy to use and provides excellent visibility about any suspicious behaviour
✅ Automate workflows are very flexible and easy to understand
✅ Straightforward integration
Cons
❌ Product is priced relatively high
❌ Does not always accurately link accounts
❌ Route building and initial configuration of workflows could be improved
Pricing: Volume based pricing. Call for a free quote
Extra Perks:
👉APIs
👉Free Quote
👉Real-Time Monitoring
6.Prove
Prove is an emerging star in the fraud detection services game. They offer phone-centric solutions that enable clients to acquire new consumers and engage with their existing consumers.
This is done by removing friction while bolstering security and enhancing consumer privacy & consumer choice. Prove Pre-Fill™ enables companies to drive more signups by auto-filling forms with authenticated identity data, to accelerate revenue while mitigating fraud across mobile, desktop, tablet, contact centre, and in-store channels.
Major Clients: State Farm, MasterCard , E Trade
Pros
✅ Seamless integration and swift onboarding
✅ Offer a robust series of products, from Payfone Pre-fill to soft authentication like Payfone TrustScore, to even more friction-induced authentication products like Instant Link
✅ Offers additional optimization services
Cons
❌ Some of Prove’s products rely on third-party data such as Mobile Network Operations (MNOs) and credit bureaus, but their latest mobile-first products do not have this dependency and rely only on data gathered via SDK
❌ Slight overlap between Trust and Verify products
❌ Password-protected documentation is slow-loading and difficult to sort
Pricing: Call for a free quote
Extra Perks:
👉APIs
👉Real-Time Monitoring
7.Kount
Kount’s AI-driven Identity Trust Platform protects the complete customer journey for more than 9,000 leading brands and payment processors.
Powered by its Identity Trust Global Network ™, Kount, An Equifax Company, links billions of trust and fraud signals to protect every interaction. It provides end-to-end coverage from account creation and login to payments and disputes.
Major Clients: Barclays , GNC , Chase
Pros
✅ The approve/decline model has proven to be a seamless experience
✅ Kount RIS API is very clear, concise, and easy to implement
✅ Also checks a customer’s chargeback history
Cons
❌Datamart BI reporting tool is not optimised, and limited
❌Decline rules are very limited
❌Many different clients and customers are automatically flagged with a low Omniscore
Pricing: Two-tier pricing based on small business and mid-market models
Extra Perks:
👉APIs
👉Real-Time Monitoring
👉Payment Verification
8.Riskified
Riskified uses powerful machine-learning algorithms to instantly recognize good customers and weed out bad ones with a 100% chargeback guarantee. Merchants can safely approve more orders, expand internationally, and eliminate the costs of fraud while providing a frictionless customer experience.
Major Clients: Steve Madden , Peloton , GoPro
Pros
✅It’s easy to filter through thousands of orders to identify general trends
✅The effectiveness of the product; does not require heavy maintenance
✅Obtain quick responses and solutions when submitting claims and reimbursements
Cons
❌There are no mobile SDKs, yet more than 50% of eCommerce is mobile in some countries
❌Focusing purely on fraud prevention means merchants in the EU need to handle 3DS/PSD2 on their own
❌Sometimes people are flagged for no reason
Pricing: Call for a free quote
Extra Perks:
👉APIs
👉Chargeback Guarantee
👉Real-Time Monitoring
Related Reading:
The Role of AI in Modern Fraud Detection
Fraud Detection for Small Businesses: Affordable Solutions
