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The COVID-19 has pushed customers and businesses online. Unfortunately, this huge shift to eCommerce has also increased the number of cyberattacks and frauds. That’s the time for online merchants to take transaction security and fraud prevention measures more seriously. In this article,  we’ll guide you through the top fraud detection and prevention solutions that can take the security of your Magento store to the next level. 

Top 6 Fraud Detection Systems for Magento Stores 

Signifyd 

Signifyd is one of the leading fraud detection tools, which was developed by former PayPal engineers. It offers online merchants three key products: Revenue Protection, Abuse Prevention, Payments Optimization and Protection. Advanced artificial intelligence and machine learning are the main Sygnifid’s selling points. These technologies help to identify any fraudulent transaction and cut them off in advance.  Signifyd’s AI checks transactions against a wide range of potential fraud indicators like P2SD and OFAC during checkout, fulfillment, and even post-purchase. This fraud prevention tool is perfect for Magento stores that have high transaction volumes. In addition, Signifyd’s products automate chargeback protection via a chargeback-guarantee model, where they assume payment for chargeback admin fees.  

Pros:

  • Automated chargeback prevention;
  • The solution covers such eCommerce frauds as return abuse and friendly fraud;
  • Payments Optimization module works with Strong Customer Authentication.

Cons: 

  • No real-time data 

 

Kount 

Kount is one more leading eCommerce fraud prevention system designed to provide adaptive protection. Its main product, Kount Control, is an AI solution that uses data from a network of over 50 processors and card issuers. Kount Control’s AI-powered passive authentication protection layer starts working the moment the customer lands on the login page. It evaluates the user’s behavior and device, as well as any network anomalies that might indicate high-risk activity from bots, credential stuffing, and brute-force attacks. This tool helps online merchants prevent account takeover fraud, protects against bots and enables frictionless account logins. Besides Kount Control, the company offers merchants the next services and solutions:

  • Chargeback Protection;
  • Friendly Fraud Protection;
  • Loyalty and eGift Card Fraud Protection; 
  • Chargeback Guarantee;
  • PSD2: Liability Shift Protection.

If you’re looking for a solid Magento fraud prevention tool, give Kount a shot. We have numerous clients satisfied with Kount integration. They state that Kount helped them to reduce fraudulent chargebacks by up to 99% and reduce the need for manual transaction review by over 80%.  

Pros:

  • Kount offers a variety of fraud prevention tools;
  • Automated and custom rules for automated chargeback prevention.

Cons: 

  • Limited machine learning capabilities compared to the newest fraud prevention tools. 

 

Riskified 

Riskified’s anti-fraud system merchants with account takeover protection, advanced payment authorization, dynamic checkout review, chargeback guarantee, and more. It offers online retailers 4 products: 

  • Chargeback Guarantee (provides accurate, real-time order decisions and scales to adapt to your growth and evolving business needs); 
  • Policy Protect (identifies shoppers that are taking advantage of your store policies in ways that are abusive and expensive);
  • Payment Optimization (conducts frictionless transaction risk analysis on every order to maximize exemptions and reduce drop off and revenue loss); 
  • Account Secure (catches malicious login attempts by both bots and humans, protecting your customers’ information and your bottom line)

Besides these anti-fraud tools, Riskified also includes a unique tool to allow customers to complete purchases after bank-side declines, helping reduce cart abandonment and boosting revenue by up to 8%. 

Pros:

  • You can purchase Riskified’s solutions separately based on your challenges;
  • Riskified has access to big data acquired from their merchant network.

Cons: 

  • Chargeback guarantee model may lead to high rates of false positives;
  • Data Riskified gets from their merchant network can become outdated and stale. 

 

ClearSale 

ClearSale is an eCommerce focused fraud prevention company that supports more than 4,000 merchants around the world. Its software specialises in preventing card-not-present frauds and fraudulent chargebacks. ClearSale uses an AI scan at the time of purchase to decide whether or not to approve an order immediately or pass it off to the company’s human review team for manual review. Moreover, the solution double checks the manula reviews before denying suspicious transactions, giving ClearSale one of the lowest rates of false-positive declines in the industry. ClearSale’s direct focus on eCommerce makes this fraud prevention software a safe bet for small and medium businesses. Moreover, you can easily integrate this solution with any platform from Shopify to Magento.  

Pros: 

  • Scoring engines and customizable rules help merchants automate transactions without human input; 
  • ClearSale allows merchants to manually review orders;
  • Insights on aspects beyond fraud such as most profitable products, most valued customers, and target market analysis.

Cons: 

  • The company takes a small cut of each sale. 

 

Sift 

Sift’s key products include a Digital Trust and Safety Suite, which combines all their API tools into one complete solution. Then, there is a module specifically designed to authenticate users and to avoid account takeover attacks, which includes the ability to enable 2FA at the same time.

Furthemore, Sift offers a Payment Protection solution aimed to help merchants with chargeback challenges. It uses data from a global merchant network, analyses it in real-time and uses AI to develop risk rules. In addition, Sift’s fraud prevention solution has a separate Dispute Management module designed to monitor log data when going through a chargeback resolution process. 

Pros:

  • Strong enterprise focus (Sift targets big companies like Airbnb and McDonalds);
  • Content security add-on (the Content Integrity product blocks spam, scams and malicious content).

Cons:

  • No free trial;
  • No real-time social media checks. 

Need Help With Fraud System Integration?

Nikita Shkurd

Nikita Shkurd

Nikita is a Partnership Manager at Mobecls and a newsmaker/streamer at home. Thinks that the best opportunity in his job is to help businesses get out of hopeless situations.