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Top 10 Fraud Detection Solutions for 2024

By Eyal Katz December 3, 2023

It’s natural to want to believe that every new account creation or online purchase signals the legitimate growth of your business. But the alarming rise in financial and data losses attributed to fraud, suggests a different reality. There are thousands of bad actors actively looking to nickel and dime businesses and consumers. 

In 2022, a staggering 2.4 million fraud reports flooded the Consumer Sentinel Record. This underscores the urgent call for businesses to fortify their defenses with cutting-edge fraud detection solutions, ensuring their assets and reputations remain uncompromised. 

Dive into the importance of fraud detection for your business, the key considerations when exploring your options, and discover the top 10 solutions projected to lead the way in 2024.

The Importance of Cutting-Edge Fraud Detection

Fraud is costly for all involved parties. According to the FTC, consumers lost a record $8.8 billion to fraud in 2022. For businesses, a single large-scale fraud attack can cost in excess of $50 million between financial losses, reputation damage, and regulatory fines. 

Federal Trade Commission Fraud summary

Fraud has existed as long as financial systems have existed, but today’s fraudsters are employing increasingly sophisticated techniques around the loopholes and blindspots in digital systems. In response, businesses are clamoring to stay one step ahead. 

Modern fraud detection tools implement AI, machine learning, and other advanced technologies. Advanced algorithms trained on massive volumes of financial transactions and consumer behaviors can identify activities that are potentially fraudulent – blocking the transaction and locking the account or referring it to human investigators for further review.

Factors to Consider When Choosing a Fraud Detection Solution

In an era where cyber threats loom large, how do you choose the best fraud detection solution from the sea of available options? Start by considering these general yet critical factors before moving on to more specific features that your business is seeking:

  • With real-time detection capabilities, as soon as a transaction or activity is initiated, the system immediately analyzes it against various parameters and known fraud patterns. Any anomalies or suspicious behaviors are detected right away.
  • Seamless integration with existing systems means data from various sources can flow into the fraud detection system without manual intervention. Integration can also offer a unified dashboard that provides a holistic view of all transactions and potential threats, making it easier for security teams to monitor and take action.
  • Scalability ensures that the fraud detection system can handle an increase in the volume of transactions without compromising on performance, while flexibility means the system can adapt to new types of fraud or changes in fraud patterns. 
  • The moment a suspicious activity or transaction is detected, the system can send real-time alerts to designated personnel or teams. This immediacy allows for quick intervention, potentially stopping fraudulent actions in their tracks. Beyond immediate threats, reporting tools provide comprehensive overviews of transaction patterns, flagged activities, and confirmed fraud cases. 
  • Not everyone using a fraud detection system will be a tech expert. User-friendly interfaces mean individuals across various roles in an organization, from tech teams to management, can access and understand the system’s findings.

Top 10 Fraud Detection Solutions for 2024

1. MEMCYCO 

Memcyco

MEMCYCO specializes in detecting and preventing brand impersonation, commonly known as “brandjacking.” It offers real-time monitoring against fake websites, alerts users when they access cloned or spoofed versions of your site, and displays a forge-proof authenticity watermark to assure visitors of the site’s genuineness.

Main Features

  • Real-time brand impersonation monitoring, alerting, and protection: Detect and prevent digital impersonation attempts in real-time, even those that escape standard scanners.
  • Agentless end-user protection: Safeguard your users from brand impersonation scams with automatic alerts when they encounter fake versions of your website.
  • Digital brand watermark: Display an irrefutable authenticity watermark to assure visitors that your content is legitimate and secure.

Best For

Digital businesses at risk of brandjacking

Price

$750 per year based on 5,000 monthly visits. Up to $20,000 per year based on 200,000 monthly visits.

Review

“We are very satisfied with MEMCYCO and recommend it fully. It has finally provided us with a solution to plug a big gap in our cyber security needs.”

2. Fraud Prevention by Forter 

Fraud Prevention by Forter

Fortiro provides specialized tools for automating financial document reviews, instantly verifying income documents, and conducting real-time fraud checks. This not only minimizes fraud losses but also reduces the verification process from hours or days to just 30 seconds, eliminating the costs associated with manual reviews.

Main Features

  • FortiGuard Video Filtering Service: provides video filtering capabilities to help protect against malicious content.
  • AI-Based malware detection: uses artificial intelligence to detect and prevent malware attacks.
  • Security Rating Overlays: security rating overlays that allow you to quickly assess the security posture of your network.

Best For

Lending platforms, banks, and financial institutions. 

Price

Pricing is based on features and number of documents. Contact Fortiro for pricing. 

Review

“Forter reduces the overhead required to maintain traditional rules based fraud platforms and manual human review. As a consumer, it is a relief to know that services like Forter exist to protect us from fraudulent activity on our accounts.”

3. SEON

SEON

Full-suite fraud detection solution that assists with account takeover, chargeback fraud, checkout fraud, payment fraud, transaction monitoring, and AML checks. 

Main Features

  • Social Media Lookup: This feature allows you to find social media profiles, criminal records, employment records, property, and business records.
  • Scoring Engine: This feature combines open data from digital and social signals in real-time. 
  • Zero Trust: This feature allows you to know and control every connected user and device.

Best For

Small to medium-sized businesses.

Price

Freemium pricing structure starts at $0, while the Starter plan is $599 per month. 

Review

“SEON. Fraud Fighters has proven to be an invaluable tool in mitigating risk for our business. Its ability to rapidly identify and prevent fraudulent transactions has greatly increased our operational efficiency, while its API integration feature allows for seamless data exchange with our existing systems.”

4. Sift

Sift

Sift offers payment protection, account defense, content integrity that prevents suspicious posts that erode consumer trust, and dispute management to protect against chargebacks. 

Main Features

  • Intelligent automation: patented technology and machine learning to automate fraud detection and prevention, reducing manual reviews and false positives.
  • Connected data: leverage Sift’s global network of data sources and signals to provide you with a holistic view of every user and transaction.
  • Adaptability: customize your logic and workflows as market conditions change, and stay flexible with industry-first features and capabilities.

Best For

Online marketplaces, retail, fintech, digital goods & services, and more. 

Price

Contact Sift for pricing.

Review

“The upside of using Sift is that it automates most of the fraud operations processes on our end. It makes things easier in terms of implementing risk controls, queues, and workflows.” 

5. ArkOwl

ArkOwl

ArkOwl provides a comprehensive email verification tool that aggregates real-time data from various sources, including social media, webmail providers, and domain databases. It supports API and batch queries for bulk email checks, highlights crucial email validation details, and has expanded its services to include real-time phone number verification.

Main Features

  • Breached Data Lookup: determine if an email address has been seen in any previous data breaches, which can help you identify compromised or stolen accounts.
  • Email Address Creation Date: see the age or creation date of an email address, which can help you spot new or suspicious accounts.
  • Query through Batch or API: check email addresses or phone numbers at a time through direct integration with your existing fraud detection platform, or by using ArkOwl’s batch query system.

Best For

Financial institutions, e-commerce stores, subscription services, and more. 

Price

Contact for pricing. Get started with a Free Trial. 

Review

“False positives and false negatives come from information that is out-of-date….ArkOwl depends on real-time data from many live sources as well as drawing from its own database. This results with information being always up-to-date in the moment of the query made on the ArkOwl service.”

6. Riskified 

Riskified

Riskified helps businesses fight chargebacks and resolve disputes, block fake accounts, prevent account takeovers, block resellers from hoarding, monitor refunds, and comply with regulations. 

Main Features

  • Policy Protect: stops abuse and rewards loyalty by identifying shoppers that are taking advantage of your store policies in ways that are abusive and expensive.
  • Account Secure: blocks account takeovers and builds trust by preventing bad actors from compromising your shoppers’ store accounts and managing customer interactions related to suspicious account activity.
  • PSD2 Optimize: reduces friction and drives conversion by minimizing strong customer authentication (SCA) friction, while safeguarding your risk profile with card issuing banks.

Best For

E-commerce platforms and digital goods providers.

Price

Contact Riskified for pricing. 

Review

“I have worked in the E-commerce Fraud industry for the last 9 years, working with different fraud solutions. I can 100 % say that Riskified is the best one so far. The accuracy of the decisions is impeccable, the dashboards and the tool are very user-friendly.”

7. Prove Identity 

Prove Identity

Prove’s PRO Model of Identity Verification, uses verifiable possession, reputation, and ownership factors for the user’s provided phone number to ensure that consumers are who they say they are.  

Main Features

  • Simplify Servicing: Streamline consumer servicing and engagement with real-time identity attribute management.
  • PSD2 Optimize: Reduces friction and drives conversion by minimizing strong customer authentication (SCA) friction, while safeguarding your risk profile with card-issuing banks.
  • Account Secure: Blocks account takeovers and builds trust by preventing bad actors from compromising your shoppers’ store accounts and managing customer interactions related to suspicious account activity.

Best For

Small to mid-market businesses. Mobile platforms, online services, healthcare, and more.

Price

Contact Prove for pricing. 

Review

“Prove PRO model represents the best technology in the marketplace that can stop fraud. The concept of using phone-centric identity verification is extremely effective in fighting fraud.”

8. Kount 

Kount

Kount offers a comprehensive suite of solutions for e-commerce, including real-time identity verification, new account fraud prevention, and account takeover protection. They provide payment-related services like fraud detection, chargeback management, and authorization optimization, coupled with compliance tools such as global watchlist searches, regulatory reporting, and customer due diligence.

Main Features

  • Identity: builds personal profiles with hundreds of data points to understand who is interacting with your brand and provide a secure and satisfying experience.
  • Payments: manages fraud and chargebacks across the entire customer journey, from preventing criminal fraud and reducing chargebacks to fighting friendly fraud and recovering revenue.
  • Compliance: simplifies requirements related to industry rules and government regulations, such as anti-money laundering (AML), know your customer (KYC), sanctions, embargos, and more.

Best For

E-commerce businesses and payment platforms.

Price

Contact for Kount pricing.

Review

“We use Kount in multiple ways to defend our checkout process from fraud. It provides a defense from volume attacks and provides scoring of our transactions so that we can automatically reject, review, or accept them.”

9. Signifyd

Signifyd

Signifyd supports merchants with chargeback protection and recovery, guaranteed fraud protection, return abuse prevention, and account protection. For payment providers, Signifyd offers a payment optimization platform. 

Main Features

  • Revenue Optimization: maximizes conversion and revenue by approving more orders, reducing false declines, and optimizing payment authorization rates.
  • Customer Abuse Prevention: protects merchants from consumer abuse, such as friendly fraud, return fraud, and promo abuse, by identifying and blocking abusive behaviors.
  • Performance Analytics: provides actionable insights and data-driven recommendations to optimize fraud prevention and customer experience strategies.

Best For

E-commerce platforms, digital marketplaces, and payment providers. 

Price

Contact Signifyd for pricing.

Review

“So far, after tracking thousands of orders, it has scored 100% of catching fraudulent orders. That is why we signed up for their service in the first place, so we are pleased with its accuracy.”

10. TruValidate (formerly Iovation)

TruValidate (formerly Iovation)

TruValidate™ combines robust data to verify consumer identities with device proofing and IP intelligence, assess risks through advanced device intelligence, and uncovers hidden fraud patterns. 

Main Features

  • Identity Insights: Verify consumer identity and expose fraud risks by verifying consumer identities against robust, global datasets.
  • Omnichannel Authentication: Provide secure, seamless customer experiences by orchestrating proprietary identity, device and behavior data to facilitate trust between organizations and consumers.
  • Fraud Analytics: Combat increasingly sophisticated identity fraud by making informed decisions based on millions of confirmed fraudulent actions, and insight into fraudster activities, locations and devices.

Best For

Financial institutions, online services, insurance, healthcare, and more.

Price

Contract TransUnion for pricing.

Review

“The ability to share information amongst various representatives of the fraud-prevention community is quite vital in order to identify any emerging trends of new fraud cases across the insurance/finance industry.” 

Safeguarding the Future

It’s important to understand that malicious actors are unlikely to stop at committing fraud. Given the opportunity, they will escalate their tactics, launching sophisticated cyberattacks and orchestrating data breaches. The interconnected nature of networks and digital systems means that a weakness in one area can potentially open doors to multiple threats.

If you’re looking to prevent malicious activities on the backend, SpectralOps can help. SpectralOps monitors your entire cloud network and seamlessly integrates with your existing CI/CD pipeline to look for vulnerabilities that start in your codebase. Get started with SpectralOps today!

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