Best E-Commerce Fraud Prevention Software [2023]
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As the business world goes more and more online, so do fraudsters’ activities. To put this in perspective, Juniper Research’s 2021 online payment fraud research estimates that online merchants would lose about $20 billion in fraud-related losses in 2021, up from $17.5 billion in the preceding year.
Fortunately, many e-commerce fraud protection solutions are accessible for everyone, from small to large companies. This article should serve as a helpful starting point for finding appropriate solutions to protect online e-commerce.
Fraud detection and prevention solutions are technologies that enable businesses to successfully monitor and prevent high-risk, phony, or fraudulent online transactions. E-commerce fraud protection software facilitates online businesses to automatically approve or reject payments to reduce the risk of chargebacks.
Refuting chargebacks, friendly fraud, or return fraud are all made easier with the ability to record user and transaction information. The same software may also safeguard user accounts from being compromised by enhancing authentication security.
These solutions can monitor a wide range of indicators, including financial transactions, user devices, acts, orders, etc.
What Are the Most Common Types of E-Commerce Fraud?
Fraudsters attack e-commerce by stealing credit card information, leading to a high rate of chargebacks.
Account takeover, often known as ATO, is another method hackers utilize to get access to a victim’s account.
You should also be on the lookout for multi-account fraud, creating multiple profiles to reap benefits if you reward referrals.
Basics of E-Commerce Fraud Prevention
1. Make use of AVS (Address Verification System)
AVS helps in the security of your online business by validating whether or not the customer’s billing address matches the information on file with the credit card provider.
2. Follow PCI (Payment Card Industry) standards
PCI includes security guidelines that all online businesses must follow. These guidelines increase the security of your transactions. Even if your e-commerce payment processing channels are secure, you risk falling prey to e-commerce fraud or even being sued if you do not follow PCI requirements.
3. Require strong password
Although it is not uncommon for us to become annoyed by too tight password policies, using a complex password will protect your clients and business. Your password should contain various characters to make it more difficult for a hacker to access it.
Top E-Commerce Fraud Prevention Software
1.
SEON is a cutting-edge fraud protection SaaS that enables the use of customizable APIs to enrich consumer data, as well as their device fingerprinting, in order to accurately track users and swiftly identify potential fraudsters. SEON’s admin allows organizations to create customizable rules and includes a white-box machine learning algorithm that suggests rules based on patterns. The platform includes a state-of-the-art digital footprint analysis that analyzes over 35+ social networks and digital services using the information provided during registration.
Pricing: Paid
Pricing page: https://seon.io/pricing/
2.
ClearSale is a cutting-edge anti-fraud software, designed for e-commerce, that eliminates fraudulent purchases, such as those made with cloned or third-party credit cards, which is increasing the security and reputation of an online store. The software can analyze a myriad of fraud indicators in real-time, as well as customer buying behavior, using sophisticated ML, AI, and Big Data technologies in combination with dynamic statistical models, to then determine whether to approve or disapprove the flow of orders placed in an online store, following GDPR guidelines.
Pricing: Paid
Pricing page: https://www2.clear.sale/fraud-protection/pricing
3.
Signifyd is a SaaS-based, PSD2-compliant fraud detection tool, for e-commerce businesses, that authenticates transactions in order to speed up the checkout process of customers. It makes fraud detection easier by providing financial guarantees, allowing firms to grow sales while lowering fraud losses. Signifyd includes key functionalities such as revenue protection, abuse prevention, and payments optimization, which work together to eliminate the stress of eCommerce fraud prevention, abuse, and payment regulation.
4.
Riskified is an artificial intelligence software that provides merchants with an insight into payment flow information, prevents fraud attempts, and reduces authentic payment declines. It is PSD2 compliant and offers solutions such as payment authorization, account protection, dynamic checkout, pre-authorization risk analysis, chargeback assurance, and more. Riskified’s built-in algorithms can rapidly identify legitimate online transactions/customers and assist businesses in preventing fraud.
5.
Sift is a machine learning-based fraud detection technology that assists organizations in protecting their mobile apps and websites from fraudulent activities. The software uses real-time data to determine a user’s identification, behavioral patterns, locational and device data, risk forecasts, and more. Sift integrates data utilizing SDK, API, and JavaScript to enable customers to obtain insights into raw datasets. It offers functionalities such as device ID fingerprinting, social data analysis, IP address monitoring, data harmonization, scoring, and automated business logic administration.
6.
Kount is a centralized financial fraud detection and DDoS software that enables businesses to detect, segment, and prevent DDoS, brute-force attacks, and other potentially harmful bots. IT departments can use Kount to authorize interactions, establish step-up authentication, manage change requests, and update risk policies. Kount offers a command center to perform investigations, evaluate performance, administer cases, and configure risk levels. The solution generates custom reports giving more insights about decline rates, IP addresses, the volume of transactions, and more
Pricing: Paid
Pricing page: https://go.kount.com/pricing
7.
CyberSource is a cloud-based payment management software that aids companies in processing transactions across numerous channels, detecting and mitigating fraud, and storing sensitive payment data securely. The platform secures transactions by using a microform to replace credit card information and embedding it into the checkout page. CyberSource enables users to define fraud management operations based on personalized rules, insights, and risk scores, allowing them to spot fraudulent activity in real-time.
Wrap Up
Investment in e-commerce fraud detection software is more than simply a financial benefit. Low chargeback rates are also advantageous since credit card processors like Visa and MasterCard might charge you extra for payments. A company’s reputation relies heavily on the security of its accounts.
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