What is the best financial fraud detection software?

Common types of financial fraud

Financial fraud comes in many different shapes and sizes, which is why every business needs a system that aligns with its unique processes, technologies, and industry standards. In most cases, online banks and other digital financial services employ fraud detection software to combat these common cybercriminal activities:

  • Identity fraud: Using stolen IDs, passports, login credentials, and other private documents, a fraudster will gain access to a customer’s account, then make unwanted purchases under their name.
  • Mobile fraud: Mobile fraud involves the theft of customer information from mobile-banking apps. Most commonly, cybercriminals gain access to a customer’s mobile bank account, then deposit phony checks using remote deposit capture (RDC) technology.

How does financial fraud detection software work?

Generally speaking, financial fraud detection software uses predictive analytics to identify suspicious activity, which can then be further investigated by risk managers and other personnel.

  • Ensuring compliance: Financial institutions must comply with various governmental regulations related to preventing identity theft, money laundering, and other schemes. Modern fraud detection solutions are developed with these standards in mind and are updated frequently, helping businesses to avoid fines and other legal consequences from regulatory entities.
  • Protecting customer data: When a customer creates an account with your business, it’s your responsibility to protect their data. Using AI-powered identification and authentication tools to monitor user behavior, risk managers can better prevent fraudsters from gaining access to customer data.

Best financial fraud detection software solutions

Again, there’s no one-size-fits-all solution for avoiding cybercriminal activity. And choosing the right financial fraud detection software will depend on your organization’s unique goals and requirements.


ThreatMetrix is a popular fraud detection solution among personal finance organizations, insurers, non-profits, and pension companies.


Developed for enterprise financial institutions, Featurespace uses adaptive behavioral analytics to spot cybercriminal activity — specifically money laundering and identity fraud.


SEON provides risk managers with a wide range of user data — extracted from IP addresses, emails, phone numbers, and social media profiles — to help them better understand their customers.


With open machine learning algorithms, Feedzai enables risk managers to create distinct profiles for suspicious accounts, in conjunction with their own data science tools. And with a fully-integrated visualization tool, you can analyze the relationship between certain accounts and cyber attack vectors. This tool is used as a key risk management solution for retail banks.

Experian Hunter

Known mainly for its credit scoring products, Experian offers an application screening solution called Experian Hunter — designed to help financial companies detect fraud in its early stages.

Implementing the best financial fraud detection software for your business

As your organization embraces digital transformation to gain a competitive edge, choosing, integrating, and maintaining the best financial fraud detection software should remain a top priority. But finding the right solution and effectively integrating it into your company’s technological ecosystem can be a long and challenging process. That’s where Codal comes in.



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Codal Inc.

Codal Inc.

A digital solutions partner with a data-driven approach that empowers companies at the intersection of UX design, development, & business.