The number of eCommerce businesses has increased substantially in recent years.
This considerable growth means that it's getting harder to protect the people who are shopping online, as well as those running these stores.
In 2020 alone, there was a 55% increase in e-fraud, and chargebacks doubled from January through June!
With the number of online shoppers growing, so does the threat to your store from cybercriminals.
Since you probably own a WooCommerce store, then you know that fraud is your biggest worry.
And with 206 thousand attacks happening every month - it's no wonder why!
WooCommerce stores are at a huge risk for chargebacks and account takeovers.
These problems can really hurt your business, but don't worry - there's plenty of ways to protect yourself from this costly problem!
In this comprehensive guide, we'll tell you what you need to know about eCommerce fraud and what are the best eCommerce fraud prevention tools to keep your store safe.
So if you're ready to build a shield wall around your WooCommerce store, then let's get started.
What is Ecommerce fraud?
Before you can protect your WooCommerce store against Ecommerce fraud, first, you need to understand what it is.
When it's up to eCommerce, we're talking about online transactions conducted over the Internet, typically through a merchant’s online store.
Ecommerce fraud is part of criminal actions that are happening during an online commercial transaction with the end goal of financial or personal gain of the fraudster while negatively affecting the bottom line of the merchant.
With more and more transactions carried online via eCommerce stores, the number of fraudulent online charges is also increasing.
Ecommerce fraud is also named payment fraud.
Targets of eCommerce frauds are online merchants, and the attack is intended to remain undiscovered.
How To Prevent Ecommerce Fraud?
The key to protecting your WooCommerce store from fraudsters isn't just identifying these activities when you see them.
It's more up to take preventative actions that will reduce your fraud risk and secure your store.
These solutions might be technical, or non-technical, but there are also several software-based tools at your disposal for fraud detection and prevention.
What's great is that best practices for eCommerce fraud prevention include a bunch of available software solutions!
We're going to cover the best ones.
16 Best Ecommerce Fraud Prevention Tools That Will Keep Your Store Safe
Kount is one of the eCommerce fraud prevention tools that protect the entire customer journey on a store with its Identity Trust Platform.
Kount uses AI(Artificial Intelligence) to protect the merchant’s store against account creation fraud, account phishing/takeovers, and other payment frauds.
Kount users can use Omniscore and Kount's flexible policy engine to get fraud prevention decisions based on desired outcomes, including reduced chargebacks, manual reviews, and reduced false positives.
With Kount, you can also use Datamart, a self-service business analytics tool that gives you in-depth insights and allows you to conduct investigations and use the data for other purposes.
Kount is a fully customizable fraud prevention tool that allows you to manage your own fraud prevention decisions and outcomes or use Kount's Professional and Guarantee Services to put it on autopilot if you wish.
Kount also offers friendly fraud prevention solutions, fraud detection, and account takeover and phishing protection via Kount Control, Data on Demand, and solutions to comply with multi-factor authentication protocols.
Riskified is a fraud prevention tool that provides merchants with real-time insights by using machine learning algorithms.
Its algorithms deliver instant decisions which allow you to streamline great customers' journey and prevent eCommerce fraud attacks.
Riskified has a full set of conversion-oriented tools that help you to increase revenue by preventing losses at each stage of the online way to purchase.
Riskified uses a wide range of analytics, particularly geolocation & IP, social media, proxy detection, device & browser fingerprinting, order linking, and more.
Riskified gives you a clear approval/decline answer for all the transactions instead of giving you risk scores and flags.
This enables you to decide which transactions to review. When it’s up to pricing, Riskified charges you just for the approved transactions and realized sales.
Forter is the fraud prevention tool that uses a database of 175 million identities to identify fraudsters.
It also has a fully automated system that works in real-time, providing you with an instant "yes/no" response to each transaction.
Forter allows you to personalize the experience as you can tailor their machine learning to your risk profiles and with a dashboard that gives you insights into behavioral data, geolocation, and payment details.
There are several more fraud controls that are available with Forter, including phone order protection and alternative payment options.
Signifyd is the tool that minimizes the amount of friction and fraudster attacks and offers you to automate the order fulfillment process.
You can integrate Signifyd with all the major eCommerce platforms, such as WooCommerce, Magento, Shopify, and BigCommerce.
Signifyd offers two plans:
- On-demand Assurance and
- Complete Assurance.
Both of those plans come with a 100% chargeback guarantee.
An On-demand plan allows you to manage fraud yourselves and only offers help when you need it.
Once you request it, a certified fraud expert is assigned to help you evaluate the order and to decide whether to accept it or decline.
A Complete Assurance plan allows you to entirely outsource your fraud prevention actions.
Signifyd takes over the evaluation of all the orders and decides whether to accept or decline the order.
Signifyd reduces the manual review frequency by as much as 80%.
ClearSale is one of the eCommerce fraud prevention tools that offer plugins and API integrations with all the major eCommerce platforms.
It monitors customer's behavior in real-time, and when they arrive at your store, ClearSale monitors how they use the site to look for browsing patterns that may be fraudulent.
This information is analyzed by artificial intelligence algorithms that are determining if the order is fraudulent.
In case the AI determines the order is fraudulent, it is being sent to a team of human review experts to confirm the findings. In some cases, these experts will reach out to the customer to confirm or deny if they are fraudsters.
This ClearSale system allows you to keep chargebacks low while avoiding high instances of false-positive declines.
CyberSource is the eCommerce fraud prevention tool built on the intelligence from over 68 billion transactions that CyberSource and Visa process annually worldwide.
CyberSource comes with machine learning methods and flexible rules that can be customized.
You can integrate CyberSource with all the major eCommerce platforms, and it doesn't require any specialized support to set it up.
You, as a merchant, are also able to use 14 risk models tailored by region, industry, and channel, and you can use the platform to automatically halt fulfillment of an order at the moment the platform identifies the fraudster.
CyberSource allows you to test the historical fraud prevention data facing various case scenarios, so you can constantly improve your security level without the risk of a chargeback.
Feedzai is an end-to-end fraud prevention solution that offers risk scoring and data orchestration using machine learning rules and case management tools to help you prevent your store's fraud.
Feedzai provides a great customer experience, even at the moment of stopping fraud attacks across multiple use cases such as launch abuse and transaction monitoring.
Their 360-degree customer view option allows you to understand the behavior patterns of your customers by processing information through every channel and source.
Feedzai can also help you adapt to new types of fraud attacks with a risk engine that can solve this problem in many ways, such as a Two-Factor Authentication (2FA), and it offers intuitive reports that help you understand fraud patterns with real-time insights.
Ravelin is an eCommerce fraud prevention tool that offers you the ability to set your own rules into fraud prevention systems and then execute them in combination with machine learning algorithms.
Orders on your store are reviewed in as little as 800 milliseconds using Ravelin, and then it returns recommendations for orders that can be reviewed by your fraud review team.
Ravelin also allows your manual review teams to provide feedback to the algorithm, allowing the algorithm to learn from your team continuously over time.
The order reviews are presented in a highly visualized dashboard that makes it easy for you to see the sales that are happening within a short time frame and detecting fraudulent customers right away.
Sift Science is an eCommerce fraud prevention cloud-based machine learning platform that analyzes more than 16,000 fraud signals that are updating in real-time.
This platform is capable of handling the demands of any online business or organization.
Sift Science present you with the entire narrative of fraudulent activities through raw data access, data visualizations, and suspicious signals.
It offers many features such as IP address analysis, device ID fingerprinting, and social data analysis in order to enable you to protect your customers and fight against fraud attacks.
Fraud.net is a leader in AI-powered eCommerce fraud prevention tools.
Its award-winning fraud detection platform helps online businesses quickly identify fraudsters using AI, big data, and visualizations of live attacks.
Fraud.net's tool is designed to identify and fight hard-detectable frauds at eCommerce stores.
Its unified algorithm combines:
- deep learning,
- collective intelligence,
- rules-based decision engines,
- analytics that detects fraud in real-time, at scale.
Fraud.net's cloud-based system offers a complete and transparent presentation of the data and statistics to help merchants simplify their fraud management and defend against different kinds of fraud.
Fraud.net is the only fraud prevention tool that offers Enterprise capabilities for AI-powered fraud detection and Enterprise Case Management and Advanced Analytics.
Nethone is a relatively new eCommerce fraud prevention tool. Their fraud solution also focuses on these three industries:
- Travel, and
- Digital Lending.
Nethone is a highly customizable fraud prevention tool that allows you to effectively create your own unique fraud prevention set of rules.
This is done through an API and leverages Nethone's effective Machine Learning technologies.
You can essentially almost build a solution that fits your risk profile and specific needs because it's highly attractive for merchants with unique store or checkout workflows.
The Nethone boasts a light integration for merchants instead of relying on their API framework to do the heavy lifting.
Nethone's solution relies heavily on behavioral analytics to profile users on your store, detect fraudulent behavior, and provide intelligence insights.
The data is collected using various signals from historical databases of user's interactions within the merchants' website.
Precognitive is another relatively new eCommerce fraud prevention tool in the industry.
Precognitive utilizes machine learning technologies to provide a proactive approach to fraud prevention, not reactive like many tools are providing.
With a focus on fraudulent account creation and account takeovers, Precognitive reduces the chargebacks and frauds by up to 67% and ATO attacks by up to 85%.
This tool also focuses on specific industries in addition to eCommerce, such as Banking and the Travel sector.
Much of its technologies are built around behavioral analytics, device fingerprinting, and a decision engine that determines which user is a fraudster and which one is not.
SEON is a European-based eCommerce fraud prevention tool that boasts over 4000 customers from Avis, Air France, and Eurobet.
Seon's platform is attractive, and it is highly flexible and customizable depending on the usage.
This allows SEON to operate in many industries such as; Banking, Gaming, Lending, eCommerce, Travel, and Payment Gateways.
Its flexible pricing models charge users based on calls to its API, and the price per call varies.
This gives you highly customizable and cost-effective usage.
You can leverage the automated, machine-driven workflow with flexible features to fit the way you do the business.
SEON's way of integrating their own Sense Platform and Intelligence Tools enables them to adapt and work with entirely different merchant profiles.
14. FraudLabs Pro
FraudLabs Pro is the fraud prevention tool that helps merchants protect their online eCommerce stores from transaction fraud and to reduce their chargebacks and losses.
This tool's fraud detection engine inspects and validates all the orders through the aspects of the order information.
Together with the historical data in the global merchants' network, FraudLabs Pro detects fraud orders accurately, including minimizing the false-positive.
FraudLabs Pro offers you the ability to customize your own fraud validation rules depending on your needs. It provides you with hundreds of validation rules to choose from your store.
FraudLabs Pro has more than 20 plugins covering most of the major eCommerce platforms, such as Shopify, BigCommerce, Magento, WooCommerce, WHMCS, OpenCart, and so on which is good for merchants who are thinking about changing platform.
Subuno is the eCommerce fraud prevention and detection tool that enables you to see your customer's data, ensure that their payment details match, and validate their Email address, along with some other features.
With Subuno, each online order can be reviewed on a separate page.
You can use a variety of offered color warnings and methods for verification at scale.
Subuno has an AI algorithm that analyzes 100+ threat factors in seconds to protect your store from fraudulent activity.
They offer a 30-day free trial period and a $19 monthly plan.
DupZapper is one of the eCommerce fraud prevention tools that supports all platforms and is easy to install.
It doesn't require API integration, and you can set it up within 15 minutes.
DupZapper's most recent innovations are device identification and validation by fingerprint, which makes it a great protection solution.
Also, the solution has a smart machine learning approach that tracks geolocation consistency of data registration, recognizes cookie blocking attempts, and identifies if a proxy is being used.
DupZapper has an extra feature to reveal the same user under different accounts.
Its reports can give you information about all the unusual activities even before a dangerous activity happens.
Knowledge Is the Way To Prevention
In order to prevent eCommerce fraudsters from attacking your store, it's important to learn how to do it and what fraud attacks there may be.
I hope this article will help you decide which one of these eCommerce fraud prevention tools might fit your store best in order to make it safe for you and your customers.
As much as it's important to secure your site, the most important thing is to secure your customers' data and their checkout process.
Many eCommerce merchants decide to use 3rd party checkout in order to provide a more secure customer experience.
That's why we created Inline Checkout - a better-converting, frictionless one-page checkout that will keep you and your customers purchasing safe.
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With thousands of eCommerce elites, we've built the ultimate checkout process that redefines the purchasing experience while keeping it secure, easy, and seamless.
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Using Inline on your store, customers shouldn't spend more than 25 seconds on the checkout page.
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