Best Fraud Management Systems & Detection Tools in 2022

Fraud is one of the most prevalent vulnerabilities in the modern world. According to the FTC, over 28 million fraud reports were filed by consumers, resulting in more than $5.8 billion in reported fraud in 2021 alone. This is more than a 70% increase over 2020.

Businesses are also at risk of fraud attempts. PwC’s 2022 Global Economic Crime and Fraud Survey reported that 46% of surveyed organizations experienced corruption, fraud, or other economic crimes in the 24-month survey period. 52% of companies with more than $10 billion in revenue were hit with fraud.

Since the beginning of the COVID-19 pandemic, businesses have responded to fraud by adopting new tools and strategies to combat the ever-evolving threat. For example, Experian’s 2021 Global Identity and Fraud Report stated that 82% of surveyed businesses had adopted customer recognition strategies.

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Why Use Fraud Management and Detection Tools?

What Is Fraud Management and Detection?

One of the best ways to fight fraud is by detecting it early, such as through fraud detection software and tools. Also called “fraud prevention tools,” these solutions are designed to enhance and aid in the analysis, detection, and management of fraud and other illicit activities across all aspects of a business.

From customers to products to processes, these solutions allow companies to track and analyze user behaviors at the application level, as opposed to the system or network level, in order to better detect fraud as early as possible. It can monitor related users’ behavior to better track down potential organized criminal activity, corruption, and misuse. Finally, it also is useful for companies looking for a governance, risk, compliance (GRC) solution.

Who Benefits Most From Using Fraud Management and Detection Tools?

Which businesses benefit most from using fraud management solutions are the same businesses who are most at risk for these sorts of crimes. In its 2021 Threat Force Intelligence Index, IBM reported that manufacturing and financial services were the two industries most at risk for attack, making up 23.2% and 22.4% of attacks IBM handled, respectively.

Banks, financial services, and insurance companies are especially vulnerable to fraud due to their access to large amounts of money and sensitive information for customers and employees alike.

The healthcare industry is a similarly high-value target thanks to the incredibly sensitive personal details they keep on patients and customers. According to a report by the United States Sentencing Commission, the median loss of healthcare fraud in 2021 was over $1 million per infraction. The high cost of healthcare in the United States also makes it a likely target for fraud.

Real estate organizations have become fast-rising targets of fraud. According to SEON’s Industry Fraud Index, real estate saw a 26.8% increase in fraud reports. That same index marks utilities as one of the most lucrative fraud targets, with a median loss of $163,000.

Government organizations are arguably the most at risk of fraud attempts. According to FTC findings in 2019, government impostor fraud was the most-reported type of fraud. 2021 FTC statistics show that government impostor fraud has resulted in $227.45 million in losses. 

Want to learn more? Take a look at What Is Cybersecurity Risk Management?

Best Fraud Management Systems & Detection Tools in 2022

In our analysis and review of the fraud prevention, detection and management market, a number of providers stood out. Here are the top 10, in our analysis.

1. Fraud.net

Based out of New York, Fraud.net’s cloud-based APIs leverage AI-powered risk intelligence to provide clients with high-powered analysis and monitoring services and potentially prevent fraud attempts before they can get ahold of your money and data.

Fraud.net offers fraud management and prevention solutions for multiple different types of fraud, such as synthetic identity fraud, account takeover, business email compromise (BEC), call center fraud, and more. Fraud.net offers specific solutions for a number of industries, including gaming, financial services, and eCommerce, as well as government organizations.

The tools provided by Fraud.net’s platform are user-friendly and are excellent at blocking fraud transactions from fully processing. They’re also useful for background checks, data analytics, and data mining. Data analytics in particular is great with Fraud.net, offering users a live feed of data and analysis to better monitor and understand potential fraud risks.

Overall, Fraud.net is a solid choice for businesses looking for a comprehensive, easy to use fraud detection and management solution.

2. SAS

With nearly 50 years in the tech industry, SAS’s range of data products is staggering in its breadth. So of course, they have a fraud management solution to go along with the rest of their suite of software and solutions.

SAS Fraud Management is a single-platform, multi-departmental solution through which interested organizations can collect and analyze data using embedded machine learning models and a simple, easy-to-learn data management interface. By centralizing fraud detection across multiple departments, the platform is better able to detect fraud attempts, communicate the proper alerts to the right personnel, and hopefully keep your data and money safe.

Though powerful, the system isn’t perfect. As the volume of data collected increases, users may experience slower processing times than they expect. In time-sensitive environments such as cybersecurity and fraud prevention, time is an essential resource. As such, companies attempting to deploy this platform at-scale should be aware of the processing challenges they might face.

Looking for more ways to protect your company’s data? Take a look at Top Secure Email Gateway Solutions for 2022

3. LexisNexis Risk Solutions

Previously known as ThreatMetrix, LexisNexis Risk Solutions offers industry-leading data analytics and risk management solutions. The firm’s technology is used in a number of industries, including financial services, healthcare, and insurance, as well as government organizations.

LexisNexis Risk Solutions’ platform combines digital identity intelligence, behavioral analytics, external data source, case management, and machine learning to craft a top-flight fraud and risk management experience with which businesses can make better, more informed decisions.

Through this platform, companies can also implement a number of cybersecurity measures including multi-factor authentication, biometrics, and device binding to better protect their employees and their data.

Insurance companies using the LexisNexis Risk Solutions ought to be aware that the Better Business Bureau has received numerous recent reports alleging fraudulent credit reporting, and the firm currently holds a C- rating with the Bureau.

4. Sift

With Sift, businesses have access to a digital trust and safety platform with a varied suite of solutions. This platform has been used by a number of prominent companies, including McDonald’s, DoorDash, Wayfair, Pateron, and Twitter.

Notable features Sift’s safety suite boasts include passwordless authentication, account defense measures like two-factor authentication, payment protection, and content integrity analysis. Through these features and more, businesses can keep their data safe and secure.

Sift’s analytics features are also incredibly sophisticated, allowing clients to get the best possible picture of their data intake and how to detect and prevent fraud attempts.

However, the UI can be a little complicated for some users, with certain tools and features seemingly not covered by Sift’s training kit. This makes Sift a less-than-ideal solution for companies without a strong enough IT department to manage the platform for less tech-savvy employees.

Losing data due to fraud and other complications can be tough. If you want to keep your data more secure, take a look at Top Data Loss Prevention (DLP) Solutions

5. ClearSale

Specifically targeted at the eCommerce market, ClearSale’s platform provides a number of industry-leading fraud management and prevention software tools. Notable clients include UnderArmour, Asus, Office Depot, and Timex, among others.

ClearSale has created solutions designed to benefit both small-to-midsize businesses and large enterprises alike. Companies with their own in-house fraud teams can also have their capabilities boosted by ClearSale’s platform.

Thanks to ClearSale, businesses can more efficiently process orders while keeping themselves safe from attempted fraud. Notably, users can track purchases through the platform and mark specific suspicious purchases as chargebacks to cut off certain fraud attempts at the beginning. ClearSale’s platform can also analyze data such as month-to-month transaction volumes, month-to-month approval rates, and chargeback rates. These data analytics can also be exported to a Microsoft Excel spreadsheet.

One point of contention with ClearSale is the way it handles order approval. Many fraud prevention solutions utilize scoring and filters to best determine which transactions are most likely to be fraudulent. ClearSale, however, simply approves or denies each order. While simplified, this binary treatment of transactions can lead to customer dissatisfaction as their legitimate orders are marked as potentially fraudulent and declined with little reason given as to why.

Overall, ClearSale is a solid solution for eCommerce businesses looking for a fraud prevention solution.

6. Forter

Forter is a fraud prevention and protection solution for the digital commerce market. Through Forter, businesses can streamline account-level authentication, reduce false declines, and prevent loss from abusive customer practices like attempting to use a promotional code multiple times.

Forter also implements machine learning into its platform to provide speedy, scalable automated decision-making. Its smart payments solutions can recover legitimate transactions that might have been incorrectly denied during the payments process. This can greatly improve customer satisfaction and minimize losses.

The platform is not without its flaws however. The pricing options can make Forter’s solutions unideal for smaller businesses, and the automated decision-making process can be opaque, making it difficult for clients to fully understand why certain choices were made.

7. Riskified

Riskified offers an all-in-one eCommerce fraud detection solution specifically designed for enterprise-level businesses or businesses who process high volumes of transactions. The firm also offers a 100% chargeback protection guarantee on each and every order.

Another notable service Riskified provides allows companies to convert declined orders into proper sales, building customer satisfaction and revenue at the same time. The firm’s machine learning models can help identify the legitimacy of online buyers.

That said, users attempting to use the company’s second look feature might encounter some trouble. The platform’s PayPal integration is still a work in progress, as well. If your business makes significant use of PayPal, it might be best to find a solution with better integration with the service.

That said, Riskified is still a top-quality choice for eCommerce organizations operating at the enterprise level looking for an effective fraud prevention solution.

A great way to protect against fraud is through rigorous employee training. Take a look at the Best Cybersecurity Awareness Training for Employees in 2022.

8. Signifyd

With Signifyd, businesses can implement order automation while remaining in control of the overall process. Its insight reporting solution offers the ability to build custom data visualization and reports to better keep track of your data and make more informed business decisions. Its abuse protection services can reward customer loyalty while thwarting abuses like one customer using a promotional code multiple times.

The Decision Center allows clients to better define how fraud attempts and abuses are blocked by the system. The fraud protection aspect of the platform leverages machine learning models to deliver automated order decisions. Interested companies can opt for Guaranteed Business Protection to obtain a 100% financial guarantee against fraud on all approved orders. Its account protection features build an ever-growing profile of shoppers within the network to detect abnormalities and stop fraud attempts as quickly as possible.

However, order denial can be slightly draconian in its implementation. For example, an order can be denied simply because the email address attached to the order belongs to a relative of the cardholder and not the cardholder themselves. Its machine learning models can fall into the same “black box” problem many enterprise-level AI services deal with, making it difficult for your human staff to determine why an order was denied.

9. FraudLabs Pro

FraudLabs Pro’s fraud prevention solution screens every single order client companies process and provides a score which allows businesses to better understand the risks associated with approving or rejecting an order.

FraudLabs Pro’s validation rules are notable for their high customizability, with over 40 validation rules for interested organizations to tweak and configure to best fit their specific needs. Its machine learning algorithm learns patterns of fraud with each approval and rejection you make.

FraudLabs Pro also provides access to its Merchant Network, providing more data for companies to feed into their machine learning models.

Unfortunately,  interested companies might encounter issues with the firm’s customer service response times, making it less than ideal for companies who lack an IT department capable of consistently troubleshooting issues themselves.

10. TransUnion

TransUnion offers a variety of products related to the field of credit scoring, and fraud detection and prevention certainly makes its mark in that offering list. Its TruValidate platform contains a fraud alerts feature that allows companies to access datasets with a global reach to build fraud and risk alerts based on public, device, and credit data. This allows companies to take a proactive approach to defending themselves against fraud.

TruValidate provides identity proofing, fraud analytics, and risk-based authentication to ensure a more secure relationship between businesses and their customers. Through TruValidate, clients have access to a number of risk-based authentication, including device-based authentication, knowledge-based authentication, and one-time passcodes.

Fraud analytics models can be customized and developed with your organization’s specific needs in mind with over 6,000 variables to choose from in the development process. Synthetic identity theft in particular can be thwarted by TransUnion models before the fraudster has a chance to escape with their ill-gotten gains.

Read Next: The Scammers’ Playbook: How Cybercriminals Get Ahold of Your Data

Zephin Livingston
Zephin Livingston
Zephin Livingston is a content writer for eSecurityPlanet with years of experience in multiple fields including cybersecurity, tech, cultural criticism, and media literacy. They're currently based out of Seattle.

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