Top E-Commerce Fraud Prevention Tools in 2021

Top E-Commerce Fraud Prevention Tools in 2021

The coronavirus pandemic that rocked the world in 2020 saw people flock to the web for everything from entertainment to education to work to shopping, and beyond. But with that surge in web traffic came a surge in cyberattacks and ecommerce fraud. With payment fraud losses already set to reach $6.4 billion in 2021 prior to the COVID-19-driven fraud boom, it’s clear that ecommerce merchants looking to avoid losses need to take their transaction security and fraud prevention measures more seriously than ever. The following are five of the top comprehensive fraud prevention tools currently available to help merchants protect their ecommerce sales, ensuring fraud doesn’t undermine the recovery so many businesses desperately need. 


Top 5 E-Commerce Fraud Prevention Tools


Signifyd is a leading commerce protection tool that offers merchants a three-tiered approach to fraud prevention, covering payment compliance, abuse prevention, and revenue protection. The system uses artificial intelligence and machine learning to identify fraudulent transactions and cut them off before they have a chance to become problems. Signifyd’s AI checks transactions against a wide range of potential fraud indicators like P2SD and OFAC during checkout, fulfillment, and even post-purchase. The system’s success rate also allows Signifyd to offer merchants a 100% financial guarantee on all orders the AI approves, ensuring merchants will never face losses for transactions that slip through the cracks. 



Bolt provides merchants with multi-layered fraud protection that uses a combination of artificial intelligence, pre-set rules, and a human review team to ensure 99% order approval and a 100% chargeback guarantee should any of the 1% of fraudulent transactions sneak past Bolt’s filters. Each transaction is checked against over 200 potential fraud signals, and the data from those checks is used network-wide to improve rules and analytics and ensure the best protection possible. Bolt also offers a suite of checkout, payment, and account management tools, making it a complete one-stop ecommerce payment solution. 



ClearSale provides comprehensive card-not-present fraud protection to over 4,000 merchants around the world. 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. Manual reviews that indicate fraud are double-checked before denial, giving ClearSale one of the lowest rates of false-positive declines in the industry. ClearSale offers tailored solutions for SMBs and enterprise-level clients, and also offers fraud-prevention consulting for companies with complex needs that may go beyond off-the-shelf products. 



Riskified’s complete anti-fraud system provides merchants with account takeover protection, lightning-fast payment authorization, dynamic checkout review, chargeback representment, a 100% chargeback guarantee on approved orders, and more. 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%. 



Kount is an ecommerce fraud prevention system designed to provide adaptive protection that maximizes approvals while minimizing false positives. Kount’s flagship product – Kount Control – is an AI-driven solution that uses signal data from a network of over 50 processors and card issuers. It reduces fraudulent chargebacks by up to 99%, reduces the need for manual transaction review by over 80%, and reduced false positives by 70%. The company also offers account takeover protection and customer experience management through its Kount Control product. 


These five products each represent some of the most comprehensive third-party fraud protection solutions available today. But, as important as third-party protection is, fraud protection should start with a company’s merchant services provider. Arguably one of the best ways to stay protected in 2021 is to find a merchant services partner that prioritizes and enables fraud protection at the account level, making third-party protection an added layer rather than a sole line of defense. 

BAMS understands the harm chargeback fraud can cause and offers merchants a full suite of chargeback defense tools through the BAMS Dispute Assistant Manager. Dispute Assistant Manager provides merchants with instant chargeback notification, full online dispute response and defense management, reason-code-based reporting, and more. With a BAMS account, merchants can rest assured that no fraudulent or unwarranted dispute will ever slip through the cracks. 

To find out more about how a BAMS merchant account can help you stop chargeback fraud in its tracks while shaving down your monthly merchant statement, get started on your free comprehensive five-point price comparison today.