Tools Used in Online Fraud Prevention

Antifraud is a large area of tasks to be covered. In e-commerce transactions, it is essential to employ some solutions to prevent, or at least reduce, fraudulent activities. Here we list some of the most popular methods and tools to do so.

Payment gateway fraud tools

All payment gateways have some basic fraud tools like 3D Secure, AVS, and CVV checks. Some payment gateways have more advanced fraud tools like address verification or velocity checks.

Data enrichment services

Data enrichment services help you to fill in the gaps in the data that you have about your customers. They can provide information about the customer’s name, address, phone number, email address, social media profiles, and much more.

Machine learning

Machine learning is a type of artificial intelligence that is used to automatically detect patterns in data. It can be used to find anomalies in customer behavior, like unusually high order values or abnormally high shipping costs.

Chargeback prevention

Chargebacks are when a customer disputes a charge with their credit card issuer. Chargeback prevention tools can help you automatically identify and flag potential chargebacks so that you can take action to prevent them before they happen.

Fraud detection

There are many different fraud detection tools available, like FraudLabs, Maxmind, and SEON. These tools can help you automatically flag orders that are likely to be fraudulent so that you can manually review them.

Fraud prevention

Fraud prevention tools can help you stop fraud before it happens. These tools work by sharing data about known fraudsters with other businesses.

Transaction Monitoring

Transaction monitoring is a process of continuously monitoring all transactions for fraud. Transaction monitoring can be done manually or using automated tools. Automated transaction monitoring tools can flag potential fraud cases for manual review.

Case Management Tools

Each transaction flagged as a potential fraud needs to be tracked in a system. Investigators checking the transactions will need to have access to all the data and be able to collaborate or escalate to domain experts. In case of cooperating with law enforcement, the tool should be able to provide the whole case file to ease the investigation.


The best way to prevent fraud is to use a combination of these tools. By using multiple tools, you can get a more complete picture of your customer’s behavior and reduce the chances of fraud.