As you probably know, EMV network rules are changing within a couple of months, in October. The chip cards will be introduced through all of the issuers, which should decrease the number of fraudulent transactions and make credit card payments more secure. While this makes it a lot harder to steal credit card info in ‘card present’ situations, the issues with online sales still remain. 

In fact, online transactions may become the focus of criminal activities, involving credit cards. As criminals will find it harder and harder to steal from chip cards, you can expect more of them to turn their attention towards online credit card payments. 

So now is a good time to think about your online store’s fraud prevention tactics and how you can improve them. We’ve prepared a short list of great Magento solutions, which can help you fight fraudulent transactions. 

Magento Fraud Prevention Features

Magento by default is not very equipped for fraud prevention, so it’s up to you to make the necessary adjustments to your backend in order to secure yourself. 

Let’s take a look at some of the basic requisites that a fraud prevention system should have. It’s also important to note that a good payment processor should have a decent fraud prevention protocol. But it’s not always the case. So it’s important to know what kind of options are on the table. Especially, if you’re a small business and some of the payment processing fees are just too much for you. 

 Geolocation Tracking 

Allows you to register and track customers’ IP addresses and cross reference them with their payment information/ shipping details.

 Proxy Detection 

A great feature that unmasks criminals, who are using proxy servers to hide their real location.

 Transaction Velocity 

It’s a term used to describe the number of transactions a user or a specific device is trying to make within a given time frame. It makes sense to assume that fraudulent/ stolen credit card details will be used as many times as possible within a short period of time, before the card is reported stolen or the account is frozen.

 Blacklisting  

This feature usually allows you to cross reference potential fraudulent accounts/ purchases with an industry database for faster and better results. 

 Social Graph  

Allows you to cross reference order info with real people through social media accounts, like Facebook, Twitter or LinkedIn. Combined with other sources of info, it can help you make better decisions and identify fraudulent users more effectively. 

There are many other features that a modern fraud detection solution possesses. In order for it to be really effective - it has to incorporate at least 3 of the features mentioned above. The tools that we offer below fall into these criteria and/ or offer some additional fraud protection features, which you should find quite handy. 

BTW, in the context of credit cards, using a credit card affiliate program is a way to earn money by introducing perspective clients to credit cards. In Diggity Marketing's post   you’ll find more on the topic. 

Magento Fraud Prevention Tools 

Fraud and Chargeback Detection by Signifyd

Price: free for up to 500 transactions per month

This fraud prevention Magento extension offers some great functionality and comes with some great features, like Search Engine reference, which can be used to systematize user profiles with the help of search engine data. If you’re a fan of ‘big data’ then this feature should help you get even more out of user profiles. 

Fraud Detection by Konduto

Price: free for up to 100 transactions per month

This Magento extension has all of the required functionality to become your go-to fraud prevention tool. It supposedly learns from your transaction approvals and adopts the algorithm to your site’s transaction patterns. 

Customizable Fraud Filters by Bijuthaj

Price: free

Unlike the previous solutions, this Magento extension is absolutely free and offers a simple set of basic functions, which can help you stay away from fraudulent transactions. It doesn’t have the fancy features, like the other two solutions. But it should be particularly useful for small merchants, who don’t have that many orders to deal with. It allows you to create custom rules for transactions that are put 'on hold', until you manually verify them. Very simple and clean. 

In addition to the mentioned Fraud Prevention Tools, you can check one more — the fourth one from Potato Commerce.

Fraud Check (MaxMind)

Price: $99 with lifetime free updates, free bugfixes, and further support

This Magento extension uses a reliable MaxMind's minFraud service to detect fraud (configuration with MaxMind takes approx 10 min). When using Fraud Check,fraud orders are coming in to your store, and the extension automatically puts a hold and sends you the email so you can review it in the backend. 

What fraud prevention tools do you use? Have you tried any of the solutions above? Let us know in the comments below!