Top 10 Fraud Prevention for E-commerce: Features, Pros, Cons & Comparison

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Introduction

Fraud Prevention for E-commerce refers to the strategic use of technology, data analysis, and automated workflows to identify and block deceptive transactions. In plain English, these tools act as a digital security guard for online stores, scrutinizing every order to determine if the buyer is a legitimate customer or a bad actor using stolen credentials. These platforms analyze hundreds of data points—from IP addresses and device fingerprints to behavioral patterns—in milliseconds to prevent financial loss.

In the context, fraud prevention is no longer optional. The rise of sophisticated “Fraud-as-a-Service” and generative AI tools has allowed criminals to automate identity theft and account takeovers at an unprecedented scale. Modern e-commerce businesses face a dual challenge: they must stop increasingly realistic fraudulent orders while ensuring that legitimate customers are not delayed by “false positives” or clunky security hurdles.

Real-World Use Cases:

• Preventing Chargebacks: Identifying stolen credit card usage before the transaction is processed, saving the merchant from bank penalties and lost inventory.
• Stopping Account Takeover (ATO): Detecting when a loyal customer’s account has been compromised by a bot or hacker trying to use saved points or credit cards.
• Mitigating Policy Abuse: Flagging “serial returners” or customers who create multiple accounts to exploit one-time discount codes.
• Bot Management: Blocking automated scripts that attempt to “inventory hoard” limited-edition product drops.

Evaluation Criteria for Buyers:

• Real-time Detection: Ability to score a transaction in milliseconds during the checkout flow.
• Machine Learning Accuracy: The precision of the algorithm in distinguishing between a human and a bot.
• False Positive Rate: How often the tool mistakenly blocks a real customer.
• Ease of Integration: Compatibility with major e-commerce platforms like Shopify, Magento, or custom stacks.
• Chargeback Guarantee: Whether the provider offers to pay for any fraudulent transactions that slip through.
• Device Fingerprinting: The depth of technical data gathered about the user’s hardware and software.
• Behavioral Biometrics: Tracking how a user types, moves their mouse, or interacts with the site.
• Custom Rule Engine: Flexibility for the merchant to set specific “if-then” logic for their unique niche.

Mandatory Paragraph

• Best for: E-commerce founders, IT security managers, and payment operations teams at high-growth retail brands or global marketplaces.
• Not ideal for: Hyper-local service providers with very low transaction volume or businesses that only accept cash-on-delivery, where digital payment risk is non-existent.

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Key Trends in Fraud Prevention for E-commerce and Beyond

• Generative AI Defense: As fraudsters use AI to create fake identities, prevention tools are deploying “Counter-AI” to detect synthetic identities that look perfectly human but have no real history.
• Behavioral Biometrics 2.0: Moving beyond simple IP checks to analyze the “physics” of an interaction—such as the angle at which a phone is held or the rhythm of keystrokes—to confirm identity.
• Zero-Permission Fingerprinting: A shift toward privacy-first identification that recognizes returning devices without relying on cookies or invasive tracking, in compliance with evolving global laws.
• Post-Purchase Monitoring: Fraud detection is extending beyond the “Pay” button to monitor the entire lifecycle, including tracking suspicious package re-routing requests after an order is shipped.
• Consolidated Risk Platforms: Merchants are moving away from “point solutions” toward unified platforms that handle payment fraud, account security, and bot mitigation in a single dashboard.
• Frictionless Authentication: Increased use of silent “background checks” that verify a user’s mobile carrier data or bank status without requiring a manual One-Time Password (OTP).
• Cross-Merchant Intelligence: Network-based learning where a fraudster identified at Store A is automatically blocked when they attempt a purchase at Store B.
• Policy Abuse Focus: A surge in tools specifically designed to track “Refund Fraud” (claiming an item never arrived) and promo code “farming.”

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How We Selected These Tools (Methodology)

The selection of the top ten fraud prevention platforms was based on an objective analysis of the current e-commerce security market.

• Market Adoption: We prioritized tools used by a significant percentage of top-tier global retailers and high-growth mid-market brands.
• Feature Completeness: Only platforms offering a comprehensive suite of tools—including device fingerprinting, ML-based scoring, and bot detection—were included.
• Reliability Signals: We looked for providers with documented high uptime and the ability to handle massive traffic spikes during global sales events.
• Security Posture: We evaluated the depth of encryption, administrative access controls (RBAC), and compliance with international data standards.
• Integration Ecosystem: We selected tools that offer “low-code” or “no-code” connectors for major e-commerce platforms as well as robust APIs for custom development.
• Customer Segment Fit: The list was curated to ensure there are viable options for small startups, medium-sized businesses, and enterprise-level corporations.

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Top 10 Fraud Prevention for E-commerce

1 — Signifyd

A major player in the e-commerce space known for its “Commerce Protection Platform” that combines big data with a 100% financial guarantee against fraud.

Key Features

• Financial Guarantee: Reimburses the merchant for the cost of any approved transaction that turns out to be fraudulent.
• Agent Resubmission: Automates the process of fighting legitimate chargebacks on behalf of the merchant.
• Decisions API: Provides instant “Approve” or “Decline” decisions within the checkout flow.
• Account Protection: Detects and blocks unauthorized account access attempts.
• Policy Abuse Mitigation: Identifies customers who abuse return policies or promotional offers.

Pros

• Eliminates the financial risk of fraud via the chargeback guarantee.
• Drastically reduces the need for manual order review teams.

Cons

• The “guarantee” model often comes with a higher transaction fee compared to “score-only” tools.
• Some users find the automated logic to be overly conservative on rare, high-ticket items.

Platforms / Deployment

• Web
• Cloud

Security & Compliance

• SSO/SAML, MFA, and RBAC.
• SOC 2 and GDPR compliant.

Integrations & Ecosystem

Signifyd offers deep, native integrations with the most popular e-commerce storefronts and payment gateways.

• Shopify, BigCommerce, Adobe Commerce (Magento), Salesforce Commerce Cloud.
• Stripe, Adyen, Braintree.

Support & Community

Extensive documentation, a dedicated success manager for enterprise clients, and a robust online training academy.

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2 — Sift

A high-tech “Digital Trust & Safety” platform that uses a massive global data network to protect marketplaces and retailers from multiple types of risk.

Key Features

• Global Data Network: Learns from over 1 trillion events per year across thousands of different websites.
• Workflows Engine: Allows merchants to create complex, automated responses to specific risk levels.
• Content Integrity: Scans for fake reviews, spam, or malicious content within e-commerce listings.
• Dynamic Friction: Automatically triggers MFA (like a text code) only for high-risk users, keeping the experience smooth for others.
• Passwordless Authentication: Supports modern login methods to prevent account takeovers.

Pros

• Excellent for large marketplaces that need to monitor both buyers and sellers.
• Highly customizable workflows allow for surgical precision in security logic.

Cons

• Requires more technical configuration to get the most out of the platform compared to “plug-and-play” tools.
• Pricing is typically geared toward mid-market and enterprise volume.

Platforms / Deployment

• Web / iOS / Android
• Cloud

Security & Compliance

• SSO, MFA, and detailed audit logs.
• SOC 2 Type II and GDPR compliant.

Integrations & Ecosystem

Designed to be an API-first platform that connects deeply into the data layer of a business.

• Major CRM and ERP systems.
• Custom APIs for mobile app integrations.

Support & Community

Highly technical documentation, developer-focused support, and an active community of “Trust and Safety” professionals.

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3 — Riskified

An AI-powered fraud management platform that focuses on increasing conversion rates by accurately identifying legitimate customers that other tools might block.

Key Features

• Chargeback Guarantee Model: Like Signifyd, they offer a full financial guarantee on approved orders.
• Deco Analytics: Provides insights into why certain customers are being declined and how to recover them.
• Policy Protect: Targets non-fraud losses like “item not received” claims and coupon abuse.
• Payment Link: Secures high-risk transactions by sending a secure payment link directly to the customer.
• Pre-Authorization Scoring: Analyzes the risk before the bank is even contacted for the funds.

Pros

• Strong focus on maximizing “approval rates” rather than just stopping fraud.
• Excellent for high-ticket luxury retailers where every false decline is a major revenue loss.

Cons

• Not a “budget” solution; the value is best realized by high-volume merchants.
• Integration into very old legacy systems can be complex.

Platforms / Deployment

• Web
• Cloud

Security & Compliance

• SSO/SAML and RBAC.
• SOC 2 and GDPR.

Integrations & Ecosystem

Standard connectors for major platforms and a very robust API for enterprise customization.

• Shopify Plus, SAP Commerce, Magento.
• Adyen, Worldpay, CyberSource.

Support & Community

Dedicated account management and 24/7 technical support. Public webinars and whitepapers are frequently updated.

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4 — Kount (an Equifax Company)

A veteran platform that combines traditional identity verification with modern AI to provide a comprehensive look at the human behind the transaction.

Key Features

• Identity Trust Global Network: Utilizes Equifax’s vast data to verify identities beyond just the digital transaction.
• Omnichannel Protection: Protects transactions across web, mobile, and even phone-based orders.
• Automated Rules Engine: Offers a “drag-and-drop” interface for creating fraud rules.
• Friendly Fraud Mitigation: Specifically targets “friendly fraud” where customers charge back legitimate purchases.
• Advanced Case Management: A detailed dashboard for manual review teams when the AI is uncertain.

Pros

• Access to Equifax’s unique offline identity data sets.
• Very stable and mature platform with a long track record.

Cons

• The user interface can feel a bit dated compared to modern startup-style tools.
• Pricing can be complex depending on which specific Equifax data modules are added.

Platforms / Deployment

• Web / iOS / Android
• Cloud

Security & Compliance

• MFA, RBAC, and encryption.
• PCI DSS Level 1, SOC 2, and GDPR.

Integrations & Ecosystem

Strong presence in the mid-market and enterprise sector with many pre-built connectors.

• BigCommerce, WooCommerce, Magento.
• Chase, Wells Fargo, and other major financial institutions.

Support & Community

Excellent self-service documentation and a global support team available for enterprise accounts.

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5 — ClearSale

A global fraud prevention provider that offers a unique hybrid approach, combining AI with a massive team of human analysts to review difficult orders.

Key Features

• Global Manual Review Team: Over 1,000 analysts available to manually check orders that the AI flags as “uncertain.”
• No False Declines Promise: Their goal is to never block a legitimate customer, regardless of the risk profile.
• Statistical Performance Reports: Clear visibility into how the tool is performing vs. previous fraud rates.
• Chargeback Protection: Flexible plans that include or exclude a financial guarantee.
• Secondary Order Review: Can be used as a “second opinion” for orders flagged by other systems.

Pros

• The manual review element is perfect for niches with unusual buying patterns (e.g., rare collectibles).
• Very high approval rates because humans can spot nuance that AI might miss.

Cons

• Manual review can sometimes introduce a slight delay in order processing (usually minutes).
• Not as focused on “developer-first” API features as some competitors.

Platforms / Deployment

• Web
• Cloud

Security & Compliance

• RBAC and encryption.
• SOC 2 and GDPR compliant.

Integrations & Ecosystem

Comprehensive support for the standard e-commerce stack.

• Shopify, PrestaShop, WooCommerce.
• Stripe, PayPal, Authorize.net.

Support & Community

Active blog and educational resources. Known for having very personalized, “human” support teams.

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6 — Forter

An enterprise-grade identity platform that creates a “Trust Profile” for every customer, focusing on the total lifetime value rather than individual transactions.

Key Features

• Identity Exchange: A private network where merchants share “anonymous” data to stop fraudsters across platforms.
• Smart Claims: Automates the gathering of evidence to fight chargebacks.
• Abuse Prevention: Monitors for “reseller” bots and multiple account creations.
• PSD2 / SCA Optimization: Helps EU merchants meet regulations without adding unnecessary friction.
• Loyalty Program Protection: Specifically secures points and rewards programs.

Pros

• Excellent for global brands that need to navigate complex European security laws.
• One of the fastest and most accurate automated decision engines.

Cons

• Best suited for very high-volume merchants; smaller stores may find it “over-engineered.”
• Does not offer a standard “self-service” setup for small businesses.

Platforms / Deployment

• Web / iOS / Android / API
• Cloud

Security & Compliance

• SSO, MFA, and advanced RBAC.
• SOC 2, ISO 27001, and GDPR.

Integrations & Ecosystem

Highly integrated with enterprise-level commerce and payment systems.

• Salesforce, SAP, Adobe.
• Adyen, Checkout.com.

Support & Community

Executive-level support and a dedicated research team that publishes regular “Fraud Attacks” reports.

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7 — Fraud.net

A cloud-native, modular platform that allows businesses to “pick and choose” the specific fraud tools they need, from identity verification to anti-money laundering.

Key Features

• App Store for Fraud: A library of different data providers and tools that can be plugged into the main dashboard.
• Graph Database: Visualizes the connections between different users to find “fraud rings.”
• Email & Phone Verification: Deep-dive checks on the age and history of a customer’s contact info.
• Custom ML Models: Allows internal data scientists to build and deploy their own models on the platform.
• Real-time Insights: A visual command center for monitoring risk as it happens.

Pros

• Highly flexible for companies that have their own in-house security teams.
• The modular approach means you only pay for the specific data you use.

Cons

• Can be overwhelming for a small business that just wants a “set it and forget it” tool.
• Documentation is geared toward more technical users and data analysts.

Platforms / Deployment

• Web / API
• Cloud

Security & Compliance

• SSO/SAML and RBAC.
• SOC 2, PCI, and GDPR.

Integrations & Ecosystem

Excellent API flexibility and connectors for most modern data warehouses.

• Snowflake, AWS, Azure.
• Major e-commerce platforms via connectors.

Support & Community

Strong technical documentation and a consultative approach to customer success.

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8 — NoFraud

A streamlined, highly automated fraud prevention service designed to give SMB and mid-market merchants an enterprise-level defense with minimal setup.

Key Features

• No-Friction Checkout: Analyzes risk in the background without requiring the customer to do anything.
• Chargeback Reimbursement: Includes a full guarantee against fraudulent chargebacks.
• Cardholder Verification: When an order is truly suspicious, NoFraud contacts the customer via text/email for verification.
• Simple Dashboard: A very clean interface that focuses only on what the merchant needs to see.
• Instant Decisioning: No “pending” states; orders are either passed or failed immediately.

Pros

• Extremely easy to set up for Shopify and BigCommerce users.
• High-touch customer service that acts as an extension of the merchant’s team.

Cons

• Not as many “deep” developer tools for companies building custom mobile apps.
• Limited in terms of “non-payment” fraud features like content moderation.

Platforms / Deployment

• Web
• Cloud

Security & Compliance

• MFA and RBAC.
• PCI DSS and GDPR.

Integrations & Ecosystem

Focused on the core e-commerce platform market.

• Shopify, BigCommerce, Magento, WooCommerce.
• Most major US-based payment gateways.

Support & Community

Known for being very accessible via phone and email. Provides excellent onboarding support for new merchants.

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9 — SEON (Fraud Fighters)

A modern, data-rich tool that focuses on “digital footprinting”—checking 50+ social and web signals to verify a person is real.

Key Features

• Social Media Lookup: Checks if an email address is associated with Facebook, LinkedIn, Twitter, etc.
• Phone & Email API: Real-time data on whether an email is a “throwaway” or a real account.
• Device Fingerprinting: Detailed technical analysis of the user’s browser and hardware.
• Free Browser Extension: Allows manual review teams to check an order’s risk directly in their browser.
• Transparent Scoring: Shows exactly why a user got a certain risk score (no “black box” AI).

Pros

• Incredible data depth for verifying international customers who might not have a credit history.
• Very affordable and offers a generous free tier for startups.

Cons

• Does not offer a chargeback guarantee; it is a “score and decide” tool.
• Requires the merchant to manage their own rules to get the best results.

Platforms / Deployment

• Web / Chrome Extension / API
• Cloud

Security & Compliance

• SSO, MFA, and RBAC.
• SOC 2 and GDPR.

Integrations & Ecosystem

Very developer-friendly with a modern API and many pre-built SDKs.

• JavaScript, Python, PHP, Node.js.
• Shopify and Zapier.

Support & Community

Excellent “how-to” guides, a public API playground, and a very active YouTube channel with fraud tutorials.

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10 — DataVisor

An advanced enterprise platform that specializes in “Unsupervised Machine Learning” to find new fraud patterns before they have even been seen before.

Key Features

• Unsupervised Machine Learning: Detects clusters of suspicious behavior without needing to be told what “fraud” looks like.
• Real-time Rules Engine: Combines ML with human-written rules for maximum control.
• Account Lifecycle Protection: Monitors everything from signup to login to payment.
• Knowledge Graph: Maps millions of entities to find hidden relationships between “separate” accounts.
• Device Biometrics: Analyzes user behavior and device health in real-time.

Pros

• The “Unsupervised” approach is the most effective way to stop “Day Zero” fraud attacks.
• Perfect for massive platforms with millions of users (like social marketplaces).

Cons

• Requires a significant investment in both time and money to implement.
• Not suitable for smaller retailers due to the complexity and cost.

Platforms / Deployment

• Web / API
• Cloud

Security & Compliance

• Enterprise SSO, MFA, and RBAC.
• SOC 2, ISO 27001, and GDPR.

Integrations & Ecosystem

Highly custom integrations for enterprise data pipelines.

• AWS, Google Cloud, Azure.
• Custom enterprise ERPs.

Support & Community

Professional services team, dedicated technical account managers, and deep academic research papers on AI fraud.

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Comparison Table (Top 10)

Tool Name	Best For	Platform(s) Supported	Deployment	Standout Feature	Public Rating
Signifyd	Guaranteed Growth	Web	Cloud	100% Chargeback Guarantee	N/A
Sift	Large Marketplaces	Web / Mobile	Cloud	1T+ Event Global Network	N/A
Riskified	High-Ticket Retail	Web	Cloud	False Decline Recovery	N/A
Kount	Identity Verification	Web / Mobile	Cloud	Equifax Identity Data	N/A
ClearSale	High-Nuance Niches	Web	Cloud	Massive Manual Review Team	N/A
Forter	Global Enterprise	Web / Mobile	Cloud	Identity-Based Trust Profiles	N/A
Fraud.net	Custom Security Teams	Web / API	Cloud	Modular “App Store” Model	N/A
NoFraud	SMB & Mid-Market	Web	Cloud	Contact-to-Verify Service	N/A
SEON	Social Footprinting	Web / API	Cloud	50+ Social Media Lookups	N/A
DataVisor	Unsupervised AI	Web / API	Cloud	Unsupervised ML Clusters	N/A

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Evaluation & Scoring of Fraud Prevention for E-commerce

The following scoring model evaluates each platform based on the needs of a modern e-commerce operation.

Tool Name	Core (25%)	Ease (15%)	Integrations (15%)	Security (10%)	Performance (10%)	Support (10%)	Value (15%)	Weighted Total
Signifyd	9	9	9	9	9	9	8	8.85
Sift	10	7	8	10	10	8	7	8.45
Riskified	9	8	9	9	10	9	7	8.60
Kount	9	7	8	10	9	8	8	8.35
ClearSale	8	9	8	8	8	10	8	8.25
Forter	10	6	9	10	10	9	7	8.60
Fraud.net	9	5	8	9	9	8	9	7.95
NoFraud	8	10	9	8	9	10	9	8.75
SEON	9	9	10	9	9	8	10	9.10
DataVisor	10	4	7	10	10	9	6	7.85

How to interpret the scores:

• 8.5 – 10.0: Industry leaders that provide exceptional value and ease of use for their specific target segment.
• 7.5 – 8.4: Strong performers that may require more technical expertise or have higher price points.
• Weighted Total: This score reflects the overall balance of the tool, but buyers should look at specific categories (like “Ease”) based on their internal team’s capabilities.

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Which Fraud Prevention for E-commerce Tool Is Right for You?

Solo / Freelancer

For an individual selling products online, the cost and complexity of a full enterprise platform are unnecessary. SEON is an excellent choice due to its generous free tier and browser extension, allowing you to manually “sanity check” suspicious orders. Alternatively, the built-in fraud tools in Shopify or Stripe are often enough for very low volumes.

SMB

Small to medium-sized businesses need a balance between protection and price. NoFraud and Signifyd are ideal because of their “plug-and-play” nature and chargeback guarantees. This allows a small team to focus on marketing and fulfillment without worrying about the financial fallout of a bad order.

Mid-Market

Growing brands with 50-500 transactions per day should look at Riskified or Kount. These tools offer more advanced customization and better data reporting, helping you fine-tune your approval rates as you scale into new international markets.

Enterprise

Large-scale retailers and marketplaces require the “heavy artillery.” Forter, Sift, and DataVisor provide the deep API access and massive global networks needed to protect millions of transactions across multiple regions and brands.

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Budget vs Premium

• Budget: SEON and Fraud.net offer the most flexible “pay-for-what-you-use” models.
• Premium: Signifyd and Riskified represent a premium investment, but the “Chargeback Guarantee” can effectively pay for itself by eliminating fraud losses.

Feature Depth vs Ease of Use

• Ease of Use: NoFraud and Signifyd are designed for merchants who want to “set it and forget it.”
• Feature Depth: Sift and DataVisor are built for dedicated security teams who want to build their own custom ML models and workflows.

Integrations & Scalability

If you are on a standard platform like Shopify or BigCommerce, Signifyd and NoFraud have the best “one-click” integrations. If you are building a custom mobile app or headless commerce site, SEON and Forter offer the best developer tools.

Security & Compliance Needs

For businesses in highly regulated sectors (like finance or high-end luxury), Kount and Forter provide the most robust compliance signals and historical data verification through their Equifax and ISO-certified networks.

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Frequently Asked Questions (FAQs)

How do these tools charge for their services?

Most tools use one of two models: a flat fee per transaction (e.g., $0.10 per order scored) or a percentage of the transaction total (e.g., 0.8% for a guaranteed order). Some enterprise platforms also charge a monthly “platform fee” for advanced features.

How long does it take to get a tool running?

For standard platforms like Shopify, integration can take as little as 30 minutes. For enterprise API integrations, it can take 2 to 4 weeks to ensure data is flowing correctly and the machine learning models have “warmed up.”

What is a “False Positive” and why is it dangerous?

A false positive (or false decline) is when a legitimate customer is blocked because they “look” like a fraudster (e.g., they are traveling and using a new IP). This is dangerous because you lose the sale and likely lose the customer for life.

Do I still need a manual review team?

With modern AI, most businesses can automate 98%+ of their decisions. However, some companies keep a small team to review high-value orders that fall into the “gray area” to ensure they don’t lose revenue.

Can these tools stop “Friendly Fraud”?

Yes, tools like Riskified and Forter use behavioral data to prove that the actual cardholder made the purchase, providing the evidence needed to win disputes with banks when a customer falsely claims they didn’t buy an item.

How do these tools impact site speed?

Most modern tools use “asynchronous” scripts, meaning they gather data in the background without slowing down the page load. The actual risk scoring happens in milliseconds via API at the final moment of checkout.

Are these tools compliant with GDPR?

Yes, all the reputable tools listed here are GDPR compliant. They use “data hashing” to protect personal information and only store the data necessary to identify fraud patterns.

Can I use more than one fraud tool?

While possible, it’s usually not recommended for the final decision. However, many merchants use a “scoring” tool (like SEON) to gather data and then a “guarantee” tool (like Signifyd) to make the final financial call.

What happens if I switch tools?

The biggest challenge in switching is “data history.” Most tools learn from your specific customers. When you switch, there may be a 1–2 week “learning period” where the new AI is becoming familiar with your store’s patterns.

Are there free alternatives?

Most payment gateways (Stripe, PayPal, Adyen) have basic fraud tools built-in for free. These are a great starting point, but they often lack the deep device fingerprinting and social lookup features of dedicated platforms.

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Conclusion

Fraud prevention is no longer a “back-office” concern; it is a critical driver of revenue and customer trust. In, the best strategy is a proactive one. A good fraud tool doesn’t just stop bad guys; it clears the path for your best customers to shop without hurdles. As a next step, we recommend choosing 2-3 tools from this list that match your company size and running a “shadow test”—where you let the new tool score your orders in the background without actually blocking them—to see which platform provides the most accurate results for your specific inventory and customer base.