Losing the fight against fraudsters?
Your current tools probably generate too many false positives. This buries your team in manual reviews while real threats slip right by.
The worst part is that this constant firefighting damages customer trust. It puts your hard-earned reputation on the line with every transaction.
This isn’t just a feeling; the numbers prove it. A report from Grandview Research revealed consumer losses exceeding $10 billion to fraud in 2023. These sophisticated attacks are clearly on the rise.
But you can fight back effectively. The right tools help you stop fraud in real-time without overwhelming your team with false alarms.
In this guide, I’m breaking down the best financial fraud detection software. These are tools designed to help you adapt to new threats and protect your bottom line.
You’ll discover adaptive solutions that reduce losses and streamline your workflows, giving you confidence in your fraud prevention strategy.
Let’s get started.
Quick Summary:
| # | Software | Rating | Best For |
|---|---|---|---|
| 1 | SEON → | Financial institutions & fintechs | |
| 2 | Sift → | Fintech firms & financial institutions | |
| 3 | Feedzai → | Large banks & global enterprises | |
| 4 | LexisNexis → | Mid-sized financial firms | |
| 5 | Verafin → | Growth-stage fintechs & mid-sized banks |
1. SEON
Are false positives overwhelming your fraud team?
SEON offers digital footprint analysis and device intelligence to combat this, providing you with unique signals beyond typical data. This means you can create a context-rich profile for each user, allowing you to surface hidden fraud patterns like emulator use.
Here’s how to take back control.
SEON helps you protect your customers from fraud and stop money laundering by blocking bad actors before KYC. You can continuously monitor logins and transactions with AI, using behavioral biometrics like unusual cursor movements to detect scams and bot attacks. Plus, you can deploy machine-learning suggested rules or build your own with a no-code rule builder, fine-tuning your risk decisioning. The result is real-time fraud detection.
Additionally, SEON integrates real-time fraud detection, risk management, and compliance monitoring into a single system, unifying your fraud and risk efforts. This enables you to view all customer risk signals and decisions together, fostering collaboration and significantly increasing your team’s efficiency.
Take control of your risk strategy.
Key features:
- Digital Footprint & Device Intelligence: Creates a context-rich user profile from 300+ proprietary signals to uncover hidden fraud patterns and monitor user activities in real time.
- AI & Machine Learning: Deploys transparent, machine-learning suggested rules, allowing you to fine-tune risk decisions and adapt to evolving business and regulatory needs.
- Unified Fraud & Risk Solution: Integrates real-time fraud detection, risk management, and compliance monitoring into a single system for improved efficiency and collaboration.
SEON features, pricing, & alternatives →
Verdict: For financial institutions and fintechs seeking the best financial fraud detection software, SEON stands out by automating 95% of fraud checks, reducing fraudulent registrations by 90%, and accelerating manual reviews by 90%, providing clear evidence of value.
2. Sift
Are false positives overwhelming your fraud team?
Your existing financial fraud detection solutions often struggle with evolving fraud tactics and too many manual reviews. This means your team faces constant pressure to justify spending on advanced tools.
Sift addresses these challenges directly by providing an AI-powered platform for fraud decisioning, helping your organization unlock revenue while cutting risk.
It’s time to fuel fearless growth.
Sift introduces Identity Trust XD, a platform designed to secure the customer journey and prevent fraud in milliseconds. This innovative approach allows you to make better fraud decisions.
Here’s how it works: Sift offers products like Payment Protection, Account Defense, and Dispute Management. Your business can secure more transactions with pinpoint accuracy, retaining loyal customers in real-time.
Additionally, Sift leverages AI-powered automation and powerful rulesets, allowing you to scale fraud prevention even with agile teams. This ensures a smooth, secure experience for your community, building trust without slowing down growth. The result is safeguarded revenue at every stage of the digital user journey.
Key features:
- AI-Powered Fraud Platform: Delivers instant detection and risk decisioning, helping you secure the entire customer journey and prevent various fraud types, including payment and account takeover fraud.
- Comprehensive Fraud Prevention: Offers specific solutions for Account Creation, Account Takeover, Money Movement, Chargeback Fraud, and Payment Fraud, protecting your revenue streams.
- Scalable Automation: Utilizes AI-powered automation and dynamic rulesets, enabling your team to streamline fraud operations and scale prevention efforts efficiently without increasing manual review burdens.
Sift features, pricing, & alternatives →
Verdict: If you’re a fintech firm or financial institution needing adaptive machine learning and real-time threat analytics, Sift is one of the best financial fraud detection software solutions available. It helps reduce losses and streamline workflows, with customers reporting up to $4.2M in median losses prevented annually.
3. Feedzai
Are you overwhelmed by evolving fraud tactics?
Feedzai tackles this with an end-to-end platform covering the entire financial crime lifecycle. This means you can address issues from new account fraud to transaction monitoring and AML compliance.
Their AI-driven system leverages behavioral analytics to profile normal customer activity, making it easy to spot abnormal, fraudulent events. This helps you verify customer legitimacy and prevent fraud across all channels.
Here’s how Feedzai helps.
Feedzai introduces solutions like ScamAlert, a generative AI agent that equips your customers to spot scams with just a screenshot. This proactive approach supports your fraud prevention efforts by empowering users directly.
Additionally, Feedzai offers AI-based individual risk profiles to stop more fraudulent transactions, which significantly reduces false positives and manual reviews. This delivers real-time risk monitoring at a massive scale for your business. The platform also automates and enhances AML compliance, reducing operational costs and improving efficiency without needing a risky system replacement, ensuring your organization scales effortlessly.
The result: More trust, less crime.
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Key features:
- End-to-End Platform: Covers the entire financial crime lifecycle, from account opening fraud prevention to AML compliance, providing a unified solution.
- AI-Powered Risk Profiles: Leverages behavioral analytics and AI to create individual risk profiles, enabling real-time detection and reduction of false positives.
- Generative AI for Scam Prevention: Includes ScamAlert, a GenAI agent that empowers customers to identify and prevent scams by analyzing screenshots.
Feedzai features, pricing, & alternatives →
Verdict: Feedzai is positioned as a best financial fraud detection software solution, protecting over 1 billion consumers worldwide and processing 70 billion events annually. A Tier 1 bank reported 62% more fraud detected and 73% fewer false positives with Feedzai, demonstrating its ability to significantly reduce losses and streamline your fraud management operations effectively.
4. LexisNexis
Is false positives overwhelming your fraud detection efforts?
LexisNexis offers data analytics specifically for fraud detection, addressing your team’s challenges. This means you can streamline your operations and reduce manual review.
It’s time to gain real-time threat intelligence.
LexisNexis provides robust risk solutions, supporting essential functions like fraud detection and identity solutions. You can therefore reduce losses and ensure regulatory compliance effortlessly. Additionally, their data analytics aid customer acquisition, helping you scale fraud prevention confidently. The system also supports workflow optimization and risk decisioning, ensuring faster, more accurate detection without disrupting your user experience. The result: confident growth as your business faces new threats.
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Key features:
- Comprehensive Risk Solutions: Provides data analytics for fraud detection, compliance, and identity solutions, directly addressing challenges with evolving fraud tactics.
- Workflow Optimization: Enhances risk decisioning and streamlines your team’s workflows, reducing manual review and improving operational efficiency.
- Data Analytics Support: Offers powerful data analytics that support critical functions like customer acquisition and health outcomes, ensuring accurate, timely detection.
LexisNexis features, pricing, & alternatives →
Verdict: If you’re seeking the best financial fraud detection software that integrates seamlessly and offers adaptive machine learning, LexisNexis is a strong contender. Its focus on data analytics for fraud detection, identity solutions, and workflow optimization directly addresses the pain points of false positives and integration issues, allowing your team to confidently scale.
5. Verafin
Drowning in false positives and evolving fraud tactics?
You need a solution that can keep pace with complex financial crime. This means leveraging cutting-edge technology for precise detection.
Verafin offers an AI-powered solution with consortium analytics to reduce false positives and enhance your team’s efficiency, ensuring you catch real threats.
Here’s your answer to advanced fraud prevention.
Verafin introduces industry-leading solutions for anti-financial crime, including robust payments and check fraud detection. This platform leverages integrated AI capabilities to improve investigator efficiency.
Their core strength lies in a consortium approach, integrating data from thousands of institutions to analyze over 1.1 billion transactions weekly. Additionally, their solutions cover comprehensive fraud management, from instant payments and wire fraud to online account takeover and loan fraud, ensuring you have a complete overview.
Plus, Verafin addresses BSA compliance, high-risk customer management, and sanctions screening, providing enhanced due diligence and automated reporting to streamline your operations and ensure regulatory adherence. The result? Reduced losses and streamlined workflows.
Key features:
- AI-Powered Solutions: Improve investigator efficiency and accurately detect sophisticated fraud with integrated AI capabilities, adapting to evolving financial crime tactics.
- Consortium Analytics: Leverage data from over 2600 customer partners to analyze billions of transactions weekly, providing cross-institutional insights for superior fraud detection.
- Comprehensive Fraud Management: Combat various fraud types, including instant payments, check, wire, ACH, card, and loan fraud, alongside online account takeover and high-risk customer surveillance.
Verafin features, pricing, & alternatives →
Verdict: Verafin stands out as a leading contender for the best financial fraud detection software, especially given its proven ability to prevent significant losses, such as the $9.6M in potential fraud losses prevented for a top 25 U.S. financial holding company in just two months. Its AI-powered consortium approach and comprehensive fraud management make it ideal for growth-stage fintech firms and mid-sized financial institutions looking to enhance accuracy and reduce manual reviews.
6. ComplyAdvantage
Struggling with too many false positives and evolving fraud tactics?
ComplyAdvantage offers an integrated, AI-driven platform that modernizes financial crime risk management, directly addressing your pain points.
This means you can streamline your onboarding processes and reduce manual review, allowing your team to confidently scale fraud prevention. It helps you beat financial crime.
Discover a unified platform for risk management.
ComplyAdvantage Mesh, a trusted SaaS-based risk intelligence platform, unifies global intelligence to combat financial crime. It offers advanced AI for customer and company screening, swiftly assessing individual and entity risks during onboarding.
You can also continuously track changes with ongoing monitoring, ensuring you’re alerted to any shifts in risk status, and monitor transactions for AML risk using rules and machine learning algorithms, alongside ID clustering and graph analysis. Additionally, it boosts sanctions compliance with payment screening, significantly reducing false positives and improving efficiency across your operations.
The platform proactively empowers risk management with timely and accurate detection through market-leading global risk and compliance intelligence, providing extensive coverage of sanctions, watchlists, PEPs, RCAs, and continuous adverse media monitoring in multiple languages.
Protect your business, prevent losses.
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Key features:
- AI-driven AML risk detection: Employs advanced AI for swift and accurate customer and company screening, reducing false positives and streamlining your onboarding process.
- Comprehensive ongoing monitoring: Continuously tracks changes in customer and company risk profiles, alerting you to potential threats and ensuring sustained compliance efforts.
- Integrated transaction and payment screening: Uses rules, ML algorithms, and graph analysis to monitor transactions for AML risk, boosting sanctions compliance and operational efficiency.
Verdict: ComplyAdvantage stands out as a leading AI-driven platform, making it the best financial fraud detection software for growth-stage fintech firms and mid-sized financial institutions. Its unified approach to customer and transaction monitoring, as shown with Monex achieving global growth, directly addresses challenges like false positives and evolving fraud tactics, ensuring robust compliance and efficient scaling.
7. Featurespace
Are false positives overwhelming your fraud detection efforts?
Featurespace’s ARIC™ Risk Hub uniquely models individual behavior, adapting to real-time changes. This means your team can finally move beyond static rules.
This adaptive technology allows the system to automatically evaluate risk, significantly reducing the manual review burden and helping you detect fraud with unprecedented accuracy.
Here’s how to outsmart evolving fraud tactics.
The ARIC™ Risk Hub delivers adaptive behavioral analytics that learn individual customer patterns, flagging out-of-character behavior instantly. This reduces false positives by up to 75% and blocks 75% of fraud attacks as they occur.
Additionally, with solutions like Scam Detect and TallierLTM™, you can protect your bank against APP fraud in real-time and leverage the world’s first large transaction model. This ensures early detection analytics for application fraud and next-gen payment security, keeping your firm compliant and secure.
Plus, ARIC™ for Card Fraud can achieve up to a 40% reduction in fraud losses, while also covering payment, check, and even gaming fraud, ensuring comprehensive protection across all your channels and business lines.
The result is powerful, real-time fraud prevention.
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Key features:
- Adaptive Behavioral Analytics: Continuously learns individual customer behaviors to identify out-of-character activity in real time, minimizing false positives.
- Comprehensive Fraud Solutions: Offers specialized modules like Scam Detect, TallierLTM™, and ARIC™ for various fraud types including card, payment, and application fraud.
- Real-time Risk Assessment: Processes billions of events annually to decision authorizations instantly, blocking attacks as they occur and reducing fraud losses by up to 40%.
Featurespace features, pricing, & alternatives →
Verdict: Featurespace’s ARIC™ Risk Hub stands out as a leading contender for the best financial fraud detection software, boasting up to a 75% reduction in false positives and blocking 75% of fraud attacks. Its adaptive machine learning and real-time behavioral analytics directly address the pain points of overwhelming manual reviews and evolving fraud tactics, providing robust protection across diverse financial transactions.
8. Hawk.ai
Tired of too many false positives slowing you down?
Hawk.ai helps you identify more financial crime and dramatically reduce false positives. This means you can increase risk coverage and improve efficiency.
Your current fraud detection struggles might be due to outdated systems, but Hawk.ai offers an AML AI Overlay solution. This allows you to gain tailored AML detection without replacing your existing systems.
Here’s how you can gain clarity.
Hawk.ai’s modular platform combines AML transaction monitoring, payment screening, and pKYC into one tool, with the option to add fraud prevention. This provides more comprehensive coverage and helps you streamline operations.
You can also use Hawk.ai’s Customer Risk Rating to maintain due diligence throughout the customer lifecycle, maximizing your risk coverage. Plus, their no-code rule setup allows you to create and adjust rules without needing developer expertise, empowering your team. Additionally, its Entity Risk Detection helps you gain a clearer understanding of customers and networks, significantly increasing the performance of your risk detection and investigations. This leads to faster, more accurate fraud detection.
The result is increased risk detection using AI.
Key features:
- Explainable AI: Improves performance in transaction monitoring and offers full transparency, allowing your teams and regulators to understand every decision.
- Modular Platform: Consolidates multiple AML and fraud solutions under one contract, allowing you to scale and respond to changing business needs.
- Seamless Integration: Designed to integrate with your existing systems, ensuring smooth operations and data flow without lengthy development cycles.
Hawk.ai features, pricing, & alternatives →
Verdict: Hawk.ai stands out as a strong candidate for the best financial fraud detection software, especially for fintechs and mid-sized financial institutions looking to reduce false positives by an average of 70%. Its modular design and explainable AI capabilities offer a flexible, scalable approach to combat evolving fraud tactics and ensure regulatory compliance without disrupting your current systems.
9. Abrigo
Are false positives overwhelming your fraud detection efforts?
Abrigo offers integrated financial crime solutions, including specific fraud detection software, to protect your institution.
This means you can move beyond manual reviews and confidently tackle evolving fraud tactics, allowing your team to focus on legitimate threats and reduce losses.
Here’s how you can detect fraud faster.
Abrigo helps you fight financial crime through its integrated fraud detection software. This solution allows you to protect your institution, moving beyond fragmented tools.
You’ll gain actionable insights through banking intelligence software, providing the data necessary to strengthen your fraud prevention strategies. This integrated approach, which includes AML/CFT and sanction screening, helps ensure regulatory compliance and streamlines your workflows. Plus, Abrigo’s advisory services team, comprised of former C-suite executives and BSA officers, can provide expert consultation and outsourced assistance for fraud detection, suspicious activity monitoring, and more.
The result: increased profitability and robust fraud prevention.
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Key features:
- Integrated Financial Crime Solutions: Protect your institution with combined AML/CFT, sanction screening, and fraud detection capabilities for comprehensive security.
- Banking Intelligence & Analytics: Gain actionable insights from banking intelligence software, enhancing your ability to understand and combat evolving fraud threats.
- Expert Advisory Services: Access consultants with experience in fraud detection and suspicious activity monitoring, offering guidance and outsourced assistance.
Abrigo features, pricing, & alternatives →
Verdict: Abrigo is positioned as the best financial fraud detection software for growth-stage fintechs and mid-sized financial institutions, offering integrated solutions to reduce false positives, streamline workflows, and ensure regulatory compliance. Its focus on integrated financial crime solutions and expert advisory services helps you confidently scale your fraud prevention efforts.
Conclusion
Ready to outsmart sophisticated fraudsters?
Choosing the right tool is overwhelming. You’re faced with endless vendor claims about AI, making a confident decision nearly impossible without clear proof.
The IMARC Group confirms market growth is driven by AI/ML to enhance detection accuracy. This highlights the critical need for adaptive tools, not just more static rules, to effectively combat sophisticated financial crime.
Here is my top recommendation.
After reviewing them all, SEON is the clear winner. Its digital footprint analysis provides unique, real-time signals that stop fraud before it happens.
It automates 95% of fraud checks and accelerates manual reviews by 90%. It is the best financial fraud detection software for boosting your team’s efficiency.
I recommend you speak with an expert at SEON to see how their platform can transform your fraud prevention strategy.
You’ll protect your revenue and reputation.
