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Best Fraud Management Tools To Have as a Small Business

Reduce the risk of credit card fraud

If you’re a small business owner that accepts payments, both in-person and online, protecting your customer’s sensitive data is paramount. It not only saves you money, but it builds trust among your customers for future purchases.

Even if your business hasn’t experienced fraud, the threat is always there. In fact, almost 60% of small businesses have experienced some sort of payment fraud. So, it’s always better to play it safe by using the following fraud management tools.


Kount is an innovative software-as-a-solution that allows merchants to do many things. It lets you approve more orders, discover new revenue streams, and simplify fraud detection through real time analysis.

Besides boosting sales, this all-in-one SaaS platform you can reduce fraudulent activities, chargebacks, and the need for manual reviews while protecting both you and your customers.

This tool works with your existing fraud program; or it can serve as a full-service solution, identifying fraudulent activity so that only more good order are processed. By using machine learning, is capable of targeting fraudsters, predicting their behavior, and containing data breaches. All of which can save your business from a PR nightmare the cost of chargebacks.


Like, Simility uses machine learning to discover and fraudulent behavior before any serious damage can be done. This happens by assessing the risk based on the devices that the fraudsters are using. You can customize Simility with various industries like banking, payment service providers, and eCommerce sites.


Trulioo is a tool that can verify your customers instantly in 60+ countries by accessing global databases. This improves fraud detection for eCommerce and payments solutions since it prevents any unauthorized transactions from taking place from the get-go.

FraudLabs Pro

This tool screens any online orders by validating elements like geolocation, proxy, email address, credit card number, and transaction velocity. It also allows you to customize these elements based on more than 40 validation rules. It also features blacklist records that have been provided by the global merchant community. Like many of these other tools, it can save business owners money by reducing chargebacks.


Signifyd can improve your bottom line by authorizing domestic and international orders that would normally be considered risky. It also automates your back office by fulfilling orders automatically. If you do get a chargeback, the company will pay you back within 48 hours, which includes chargeback fees and shipping.


This tool integrates with PayPal, Stripe,, Magento, and Shopify. It also provides reports and insights so that you can make more informed decisions. Chargeback also notifies when a card has been deceived so that you can take the appropriate actions, like canceling recurring billing. It also automatically notifies your customers so that you can resolve any disputes.


Like most of the other tools mentioned in this list, Trustev uses factors like shopping behavior, location, email address, and shopping history so that only your good customers are approved. Because it relies on machine learning it stays ahead of fraudsters who are using the latest scams.


This is an end-to-end eCommerce fraud prevention solution for online merchants that makes instant decisions and a 100 percent chargeback guarantee. This eliminates any unnecessary chargeback fees and can grow your business since it approves orders that may have otherwise been denied.


BluePay has made a name for itself an e-commerce payment platform, but it also offers a credit card fraud management services that implement tokenization and point-to-point encryption (P2PE). This tool also will only accept payments from trustworthy countries, geo tracking, CVV filter, and a blacklist of fraudsters by IP, email, or address.

Tips For Payment Fraud Management

Besides the specific fraud management tools previously listed, here are the additional tools that your business should consider when fighting fraud and searching for a fraud management tool.

  • Tokenization. Some processors will do this for you automatically. It’s more secure than encryption since it scrambles sensitive data. A secret tokenization key is the only way to decrypt the information.
  • Incorporate Verification Tools. These predict any suspicious activity, such as an unusually large purchase.
  • IP Filtering and Country Blocks. It’s not uncommon for eCommerce platforms to filter out the computer addresses of known fraudsters or people living in countries that are known to have a high number of scammers.
  • 3D Secure Technology. Both MasterCard and Visa both offer 3D Secure solutions, called MasterCard SecureCode and Verified by Visa. Both require a single use unique password.

Even though these tools can help reduce the risk of fraud, you also need to:

  • Educate your team and customers. Provide them with anti-fraud tips, such as why they should cover the cameras on their smartphones and computers so that they don’t accidentally let fraudsters obtain sensitive data.
  • Learn from other breaches. This will ensure that you don’t make the same mistakes, like providing login credentials to vendors, which was the case with Target in 2013.
  • Audit your point-of-sale-systems consistently. Make sure that no one has tampered with any point-of-sale hardware and mobile payment devices that you use. If so, you’ll be vulnerable to future attacks. More importantly, it allows you to reduce the damage since you can resolve the issue immediately.

Staying aware and up-to-date with the education about fraud detection that is provided on an almost daily basis is still going to be your most promising protection against this type of activity.

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We uphold a strict editorial policy that focuses on factual accuracy, relevance, and impartiality. Our content, created by leading finance and industry experts, is reviewed by a team of seasoned editors to ensure compliance with the highest standards in reporting and publishing.

Freelance Writer at Due
Albert Costill graduated from Rowan University with a History degree. He has been a senior finance writer for Due since 2015. His financial advice has been featured in Money Magazine, Fool, The Street, Forbes, CNBC and MarketWatch. He loves to give personal finance advice to millennials.

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