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10 Best Ecommerce Fraud Prevention Software In 2023

Best Ecommerce Fraud Prevention Software Shortlist

Here’s the shortlist of the best tools that I’ll cover in this article.

  1. Kount

    Best for AI-powered identity trust protection

  2. ClearSale

    Best for preventing friendly fraud

  3. Shield

    Best for risk management

  4. Arkose Labs

    Best for bot attack mitigation

  5. Riskified

    Best for account protection

  6. DataDome

    Best for bot management with machine learning

  7. Forter

    Best for instant yes or no responses

  8. Signifyd

    Best for fraud event data collection

  9. Unit21

    Best for suspicious activity management

  10. Midigator

    Best for chargeback dispute management

Ecommerce fraud protection software can add a layer of prevention to a store that operates on the internet because the online market can be a complex and sometimes dangerous place for merchants. There are many opportunities to expand your business, but this can expose your company to new threats. According to estimates, ecommerce losses to payment fraud were around $41 billion globally in 2022. These estimates expect this figure to grow to $48 billion in 2023.

Fraud prevention tools can help your business manage and prevent fake, high-risk, or fraudulent transactions with your ecommerce store. They can monitor multiple metrics, such as orders, customer devices, and behavior. Choosing the best ecommerce fraud protection software that doesn’t add to checkout abandonment issues and can maintain your conversion rate is crucial. Luckily, you found this list of the best options available.

How I Selected the Best Ecommerce Fraud Prevention Software

Perhaps you're wondering how I selected the best ecommerce fraud protection software for this list? To build this top 10 list, I evaluated and compared a wide range of ecommerce fraud protection software with positive user ratings.

After determining my long list of top choices, I further honed my list by using the selection criteria below to see how each platform stacked up against the next one. I also drew on my years of ecommerce experience to pinpoint the features that add a lot of value.

If you have general questions about ecommerce fraud protection software or how to pick the best ecommerce fraud protection software for your organization, take a look at our frequently asked questions section below. Or, you can skip directly to my detailed software summaries, if that's what you need the most.

Selection Criteria

Here’s a short summary of the main selection and evaluation criteria I used to develop my list of the best ecommerce fraud protection software for this article:

Usability:

A significant part of using these tools will be setting up, maintaining, and regularly updating the system. Considering how time-consuming or costly implementing a fraud protection system will be is essential. So, I look for systems that are easy to establish, can deploy quickly, and do not require many resources to set up.

Reporting Dashboards: 

Fraud protection systems should provide report dashboards to inform you when it stops fraud from occurring in your store. It should also give you in-depth analytics on your customers’ behavior, such as where they tap their mobile device screens, clicks on their computers, where they access your store from, and their IP addresses. This information can help you identify your customers and confirm whether they’re genuine shoppers or fraudsters.

Handling False Positives:

Many ecommerce stores don’t realize they’re missing a significant number of conversions because of false positive fraud indicators. This means they’re rejecting good customers and preventing them from buying from your store. Many ecommerce businesses don’t realize they can lose out on more revenue due to false positives than to the cost of fraud.

I look for systems that allow users to approve as many legitimate transactions as possible. These systems should use various indicators to determine whether a transaction is authentic. This helps your business capture revenue you would lose out on due to false positives in fraud detection while still filtering out fraudulent transactions.

Software Integrations: 

It’s crucial to use a tool that integrates with your other systems well and connects other systems. So, I look for software ensuring your fraud management has the necessary functionality. It should also perform to your standards and remain viable when you need to add new systems to your arsenal.

Pricing:

The best pricing for your business will depend on your needs and what you want from the software. Ecommerce fraud protection software uses various pricing models based on subscriptions, volume, and transactions. Other systems use more complex pricing models that involves flexible pricing based on your industry size, company size, and other varying aspects.

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Overviews of the 10 Best Ecommerce Fraud Prevention Software

Here’s a brief description of each ecommerce fraud protection software to showcase each one's best use case, some noteworthy features, screenshots, and pricing information.

1

Kount

Best for AI-powered identity trust protection

Kount is an identity trust software that uses AI to protect your online store from different types of fraud.

Why I picked Kount: The AI uses a model that evaluates every interaction with your ecommerce store and weighs the risk to give you an estimate of the transaction’s impact on your business. The platform reports each fraudulent action with a safety rating. This rating ranges from .1, which indicates an unsafe transaction, to .99, which is a safe transaction.

Kount offers enterprises an end-to-end fraud detection and protection solution. The platform’s solutions enable businesses to reduce chargebacks and mobile fraud while simultaneously increasing their sales and order reviews. You can use the platform’s customization capabilities to change several data points in the AI’s fraud prevention decisions to align with your desired outcome.

Kount Standout Features and Integrations

Features include digital identity verification, account takeover protection, bot detection, chargeback prevention, friendly fraud protection, adaptive authentication, dispute management, and data on demand.

Integrations BlueSnap, Bizintel 360, Shift4Shop, ResponseCRM, BehavioSec, Ekata, AppHelp, AppWise, Sublytics, Chargeback Gurus, and Kompliant.

Free demo

Pricing upon request

Pros

  • In-depth transaction information.
  • Effective onboarding team.
  • Customer history insights.

Cons

  • No dashboard customization.
  • Downloading reports are slow.
2

ClearSale

Best for preventing friendly fraud

ClearSale is a complete ecommerce fraud protection system that can protect online stores from common cyber crimes such as friendly fraud.

Why I picked ClearSale: The platform provides online stores with the tools and resources to prevent fraudulent chargebacks, including friendly fraud. Friendly fraud is a common cybercrime that involves consumers intentionally making an online purchase which they dispute with their bank. ClearSale uses a combination of fraud analysts and artificial intelligence to collect customer data, analyze risk, and discover fraudulent activity.

ClearSale caters to businesses of any type and size, no matter their geographical location. The platform provides simple, secure, valuable fraud protection to help enterprises to conduct safe and profitable transactions. For every transaction on your store, ClearSales’ human experts will review the purchase process to ensure your business doesn’t receive any false declines.

ClearSale Standout Features and Integrations

Features include false decline protection, artificial intelligence, fraud scoring, order scanning, fraud analysis, chargeback protection and guarantees, data import and export, analytics dashboard, and 2-factor authentication.

Integrations include Bigcommerce, Magento, Vtex, Shopify, Prestashop, WooCommerce, Shift4Shop, Zoey, Volusion, Salesforce, and nopCommerce.

Pricing upon request

Pros

  • Easy to learn.
  • Integration with major ecommerce platforms.
  • Automated fraud detection.

Cons

  • No clear pricing.
  • Takes time to approve transactions.
3

Shield

Best for risk management

Shield provides online risk management solutions to help businesses manage fraud and prevent hostile account takeovers.

Why I picked Shield: The platform continuously scans for risks throughout your customers’ sessions with your online store. It utilizes its fraud library of 7 billion devices and 700 million accounts to prevent your store from experiencing never-before-seen attacks. This helps you stop fraudsters before they can perform any deceptive actions.

Shield provides enterprise organizations with an AI system that combines neural networks with symbolic AI to help identify fraudulent attacks. Shield can detect malicious tools that fraudsters use at any point throughout your online store. It leverages device and network intelligence to assess every customer, device, and account of every customer or potential customer.

Shield Standout Features and Integrations

Features include incentive abuse and collusion prevention, bot attack detection, account sharing and subscription abuse management, ad fraud detection, payment fraud management, and identity fraud detection.

Integrations include a comprehensive API that enables businesses to connect Shield to their current systems.

Pricing upon request

Pros

  • Visualizes vital metrics.
  • Easy to use UI.
  • Invaluable data.

Cons

  • Only works on Google Chrome.
  • Customer support needs improvement.
4

Arkose Labs

Best for bot attack mitigation

Arkose Labs provides solutions for rooting out various forms of fraud, such as bot attacks, to ensure you transact with legitimate customers.

Why I picked Arkose Labs: The platform offers businesses a ZeroBot guarantee against various forms of fraud, including automated attacks, website scraping, and scaled new account fraudsters. Arkose Labs implements a unique assurance solution with adaptive step-up challenges. This asks potential customers who show bot-like behavior to complete actions to show they’re human.

Arkose Labs helps businesses of any size in various industries, such as retail, travel, finance and fintech, online gaming and gambling, and technology platforms. It purposely frustrates fraudsters and delivers user-centric account security using enterprise-grade CAPTCHAs to beat persistent bot and fraud attacks. Arkose Labs provides risk assessments, machine learning analytics, and risk insights to help you monitor your fraud prevention efforts.

Arkose Labs Standout Features and Integrations

Features include account takeover prevention, bot and abuse management, micro-deposit fraud, website scraping, payment fraud management, and new account fraud management.

Integrations include Tableau, AWS, Okta, Splunk, and Fastly. The platform offers a flexible API that enables users to create custom integrations with their current systems.

Free demo

Pricing upon request

Pros

  • Improves user experience.
  • Dedicated analyst team.
  • Insights provide potential risk information.

Cons

  • Dashboards and reports need work.
  • Latency with synchronous events.
5

Riskified

Best for account protection

Riskified uses advanced machine learning modeling and fraud protection to protect your customers’ accounts and keep your business safe.

Why I picked Riskified: The platform provides a full suite of conversion-based solutions to help prevent fraud throughout your customer’s experience with your store. The account protection, dynamic checkout, and payment authorization tools help you increase conversions while blocking fraud attempts. Its account takeover prevention solutions can help your business protect its loyalty programs.

Riskified can help businesses of any size safely approve orders, expand globally, and decrease fraud costs. The software becomes more accurate with every order it analyzes, every insight it feeds to the system’s machine learning models, and every new merchant joining your network. Riskified’s teams of developers, researchers, and data scientists constantly work to improve the platform’s performance so your business can experience its full potential.

Riskified Standout Features and Integrations

Features include chargeback protection, accurate fraud reviews, automated dispute resolution, account takeover protection, fake account prevention, unauthorized reseller blocking, fake item not received claim prevention, and transaction risk analysis.

Integrations include Stripe, Shippo, Salesforce, Shopify, Shoplazza, Chargeback Gurus, Cider, and Primer.

Free demo

Pricing upon request

Pros

  • Excellent turnaround time.
  • Explains why it denies orders.
  • Displays all pertinent information.

Cons

  • Large learning curve.
  • Complex API documentation.
6

DataDome

Best for bot management with machine learning

DataDome is an online fraud and bot protection platform that accurately detects attacks.

Why I picked DataDome: The platform enables businesses to identify and prevent real-time bot attacks using pattern databases with machine learning and AI. The anti-bot protection lets business teams manage unwanted traffic from various locations and filter endpoints according to custom rules. DataDome attaches ID tags to your business’s transactions, which you can use to monitor false positives and get daily or weekly reports.

DataDome works for medium and large businesses searching for secure solutions to protect account takeovers, card cracking, and credential stuffing. Their bot detection engine can do this by processing over one trillion data pieces daily. DataDome is scalable and operates anywhere in the cloud, growing with your business and its increased requirements.

DataDome Standout Features and Integrations

Features include web threat management, web traffic reporting, internet usage monitoring, bot detection, activity dashboard, behavioral analytics, DDoS protection, and endpoint management.

Integrations include DataDog, Slack, Splunk, Magento, Kubernetes, Apache, Salesforce, ASP.net, Cloudflare, Fastly, and Microsoft Teams.

30-day free trial

From $4,190/month

Pros

  • Excellent customer support.
  • Get started immediately.
  • Easy to manage.

Cons

  • Dashboard is challenging to navigate.
  • Threat overview lacks context.
7

Forter

Best for instant yes or no responses

Forter uses a massive database to differentiate real customers from fraudsters with instant yes or no responses.

Why I picked Forter: It’s an automated tool that provides businesses with instant responses that either allow or disallow every transaction. Forter uses a comprehensive database of over 175 million identities to prevent fraudsters from making purchases or performing other cybercrime actions in real-time. The platform uses this rapidly growing database in combination with predictive fraud modeling and research and the ability to allow users to customize the software for their specific business requirements.

Forter is a cloud-based fraud prevention solution for any sized enterprise that provides various fraud prevention solutions. These solutions include payment protection, intelligent routing for automated payment decisions, and policy abuse protection. Forter’s solutions are an excellent match for ecommerce owners in multiple sectors, such as retail, travel, and food and drink.

Forter Standout Features and Integrations

Features include account takeover prevention, multiple account creation blocking, authentication automation, real-time decision-making, instant assessments, identity-based decisions, and policy enforcement.

Integrations include Adobe, Salesforce, SAP, Shopify, Bigcommerce, Shoplazza, Flutterwave, Nuvei, GlobalPayments, FreedomPay, Logicbroker, and Workarea.

Free demo

Pricing upon request

Pros

  • Automatic purchase evaluation.
  • User-friendly dashboard.
  • Easy to use.

Cons

  • Doesn’t work on iOS browsers.
  • Setup is challenging.
8

Signifyd

Best for fraud event data collection

Signifyd helps ecommerce businesses remove the stress of fraud prevention by using a list of known fraudsters.

Why I picked Signifyd: The platform collects fraud event data from a humongous list of retailers and utilizes an identity blacklist of names and details that fraudsters used in the past. Typically, scanning a list of identifications of this size would delay payment processing. But, Signifyd uses extra checks with AI processes to identify a purchase’s viability and ensure that it’s very likely fraud.

Signifyd helps small, medium, and large businesses automate fraud prevention by using real-time machine learning and helping them increase revenue. The platform provides companies more than fraud prevention - it also enables ecommerce stores to perform market analysis. You can use Signifyd to identify your biggest sellers and identify ways to increase sales of your biggest margin products to improve profitability.

Signifyd Standout Features and Integrations

Features include fraud protection, abuse prevention, account protection, strong customer authentication, payment optimization, cross-border expansion, order automation, and omnichannel commerce.

Integrations include Bigcommerce, Salesforce Commerce Cloud, Magento, Shopify, Fraud.net, ReCharge, Inai, and Authorize.net.

Pricing upon request

Pros

  • Cover the costs of chargebacks.
  • No manual transaction reviews.
  • Accurate fraudulent order catching.

Cons

  • Some transaction declines are unclear.
  • No real-time data.
9

Unit21

Best for suspicious activity management

Unit21 provides ecommerce businesses with an advanced tool to help detect suspicious activity throughout their online store.

Why I picked Unit21: The software provides a straightforward API and dashboard to help you detect advanced risks and fraudulent activity. Unit21’s system comes with over 100 thresh hold-based rules and tools. The vendor has active partnerships with leaders in identity verification, crypto blockchain forensics, adverse media screening, and other security industries.

Unit21 is an excellent option for businesses of all sizes looking to implement data-driven fraud, risk, and compliance decisions. The platform uses various data sources to detect suspicious activity in your online store. Unit21 uses a risk and compliance team to define the fraud rules and workflows, so you don’t need to hire a new engineer to do it for your business.

Unit21 Standout Features and Integrations

Features include identity verification, transaction monitoring, case management, fraud detection, suspicious activity monitoring, compliance management, suspicious activity reporting, and money laundering monitoring.

Integrations include Affirm, Socure, Google Cloud Platform, Gusto, Coinbase, Chime, and Chainalysis. The platform also offers an API to allow businesses to connect the software to their current systems.

Pricing upon request

Pros

  • Regularly accepts new customer ideas.
  • Provides excellent rule-creation features.
  • Easily monitor all transactions.

Cons

  • Long implementation process.
  • Difficult to use.
10

Midigator

Best for chargeback dispute management

Midigator helps businesses simplify chargeback disputes to recover more revenue.

Why I picked Midigator: The software’s advanced technology creates intelligent, custom responses that will have the best possible chance of winning. All you have to do is add order information to the platform’s merchant account data to start matching chargebacks to the original orders, so you can build a compelling case. Midigator will manage the process to improve dispute efficiency and accuracy to help you stay in good standing with your merchant accounts.

Midigator is an excellent option for businesses of all sizes that need ways to simplify payment disputes. You can use the platform to get in-depth data on why customers are initiating chargebacks. By breaking down the details Midigator provides, you can identify underlying reasons for these disputes and solve issues at their source.

Midigator Standout Features and Integrations

Features include chargeback prevention alerts, dispute responses, custom notifications, account reporting, data consolidation, customer responses, and performance tracking.

Integrations include Stripe, Shopify, WooCommerce, ShipStation, Maxio, Worldpay, Sticky.io, Authorize.net, 29 Next, Verifi, Paysafe, and OpenPath.

Pricing upon request

Pros

  • Simple integrations with systems.
  • Finds and disputes chargebacks efficiently.
  • Easy to use platform.

Cons

  • Load times are slow.
  • Long onboarding process.

The 10 Best Ecommerce Fraud Prevention Software Summary

Tool Free Option Price
1
Kount

Best for AI-powered identity trust protection

Free demo

Pricing upon request Visit Website
2
ClearSale

Best for preventing friendly fraud

Not available

Pricing upon request Visit Website
3
Shield

Best for risk management

Not available

Pricing upon request Visit Website
4
Arkose Labs

Best for bot attack mitigation

Free demo

Pricing upon request Visit Website
5
Riskified

Best for account protection

Free demo

Pricing upon request Visit Website
6
DataDome

Best for bot management with machine learning

30-day free trial

From $4,190/month Visit Website
7
Forter

Best for instant yes or no responses

Free demo

Pricing upon request Visit Website
8
Signifyd

Best for fraud event data collection

Not available

Pricing upon request Visit Website
9
Unit21

Best for suspicious activity management

Not available

Pricing upon request Visit Website
10
Midigator

Best for chargeback dispute management

Not available

Pricing upon request Visit Website

Other Options

Here are a few more options that didn’t make the best ecommerce fraud protection software list:

  1. Bolt

    Best for checkout fraud prevention

  2. SEON

    Best for uncovering fraud patterns

  3. FraudLabs Pro

    Best for improving profits by reducing chargebacks.

  4. Nethone

    Best for learning all transaction scenarios.

  5. Subuno

    Best for efficient fraud detection.

  6. Cybersource

    Best cloud-based payment management.

  7. NoFraud

    Best real-time virtual identity verification.

  8. Vesta

    Best for end-to-end, instant transaction verification.

  9. Sift

    Best for disclosing all customer actions.

  10. Covery

    Best for real-time customer assessment.

People Also Ask

Picking the Right Ecommerce Fraud Prevention Software

Fraud isn’t exciting to deal with when operating an ecommerce business. This is an ongoing battle, and keeping up with the newest scams and schemes is challenging. But, using ecommerce fraud protection software can protect your business from data breaches and financial losses. No one fraud prevention software will solve all of your challenges equally. The best system for your company will depend on your needs and scenario. But luckily, you now have this list to get you started.

If you’re searching for other ways to protect, operate, or market your business to increase revenues, try signing up for our newsletter. Here, you’ll find the latest tips, trends, tools, and insights from ecommerce professionals that can help enhance your online store.

By Francois Marchand

I’m Francois Marchand, content strategist and editor. I've worked in marketing, journalism, and communications for 20 years. I've been in charge of creating and managing content at Postmedia, Vancouver Film School, and Unbounce. I love helping business leaders, content creators, and marketers of all stripes grow their skillsets and knowledge base to stay ahead of the competition.

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