The Forrester Wave™: Digital Fraud Management, Q3 2023

Digital Fraud Management Vendor Product Comparisons 2023

Key features and pros and cons of top Digital Fraud Management products:

LexisNexis Risk Solutions - Leaders

Pros:

Strong rule and AI-based risk scoring and biometrics
Augmented DFM solution by acquiring behavioral biometrics vendor BehavioSec in May 2022
Differentiated product vision and high levels of technical employee staffing
Robust user and role management
Broad rule-based risk-scoring capabilities including rule induction, device IP and fingerprint hotlists, champion/challenger models, and version-controlled risk scoring
Wizard-based supervised machine learning configuration is exposed

Cons:

Solution does not offer chargeback management
ROI and general reporting are behind others evaluated
Reference customers would like to see improvements with the configurability of AI/ML-based risk scoring

Sift - Leaders

Pros:

Powerful, productized coverage of diverse payment types including cryptocurrency and alternative, peer-to-peer (P2P) payments
Differentiated technical roadmap
Disproportionately large user group
Above-average internal processes to ensure and maintain solution customer adoption
Outstanding productized rules and risk-scoring strategies for various payment types and non-payment activities like new account opening, return and promotion fraud, and content abuse

Cons:

Innovation potential as indicated by technical employee staffing lags others evaluated
Scale (monetary amount of payments handled) lags others in this evaluation
Reference customers would like to have more insight into risk-scoring methods

Accertify - Strong Performers

Pros:

Shifted from purely payment-centric model to assessing entire lifecycle of merchant-consumer relationship
Superior technical product roadmap
Large user-group community
Versatile and robust vendor processes for ensuring and increasing customer adoption
Versatile admin and business user management
Flexible customer authentication policies
Streamlined chargeback management and ROI reporting
Integration with block-lists and service rules for identity verification

Cons:

Innovation potential as indicated by technical employee staffing lags
Size and DFM revenue contribution of partner network lag
Pricing flexibility and transparency lag
Rule-based and AI/ML model management lag others evaluated
Productized channel and payment types for fraud management support lag
No built-in 3D Secure integration support
Reference customers wish case and alert management were slightly more customizable

Forter - Strong Performers

Pros:

Moving past pure payment fraud platform to offer identity protection and abuse and policy fraud prevention
High levels of technical employee staffing
Strong processes to maintain and boost merchants' use of the solution
Strong built-in models for payment channels and transaction types
Ahead-of-the-pack ROI reporting of the DFM solution

Cons:

Pricing flexibility and transparency lag others evaluated
Partner ecosystem's contribution to DFM revenues is only on par
Rule management like device and IP address blocklist configuration and workflows lag
Case management lags
Non-payment or content abuse fraud management lags
Reference customers want more insight into the exact things the vendor is scoring in their model

Kount - Strong Performers

Pros:

Equifax's 2021 acquisition of Kount has proven valuable
Large and healthy partner ecosystem with oversized DFM revenue contribution
Superior internal processes to increase and maintain customer adoption
Superior pricing flexibility and transparency
Built-in templates for payment channels and transaction types are versatile
Reference customers said rule management is above expectations

Cons:

Size of vendor's user group is smaller than others evaluated
Lags in user management and statistical decisioning
Neither supervised nor unsupervised algorithm tuning are exposed
Solution requires additional vendor-provided services in AI/ML-based decision-making

Outseer - Strong Performers

Pros:

RSA spun out fraud and risk intelligence business unit in 2021 into Outseer
Long been financial institutions' choice for digital fraud management
Superior technical roadmap
Partner ecosystem's size and contribution to DFM revenue shine
Strong internal processes for ensuring and maintaining customer adoption
Strong user management
Easy-to-configure statistical decisioning
Robust risk-based customer authentication policies
Superior case management and scale of deployments

Cons:

Size of user-group community lags
Levels of technical employee staffing lag
Pricing flexibility and transparency lag
Rules management and support for non-payment transactions lag
No productized support for tackling non-payment fraud like return, policy abuse, and scraping
No chargeback management
Reference customers said rule and lists management is below expectations

Signifyd - Strong Performers

Pros:

One of the original DFM offerings with chargeback guarantee
Oversized customer community
Superior levels of technical employee staffing
Strong partnership ecosystem
Potent chargeback management tooling
Productized reporting on the ROIs of the DFM solution
Large array of integrated technology partners in payment processing and device fingerprinting

Cons:

Pricing flexibility and transparency lag others evaluated
Customer authentication lags
User management and AI/ML-based risk-scoring configuration are behind
Case management and productized payment type templates and policies lag
Scale in terms of monetary value of payment transactions handled lags
Reference customers experienced problems in early deployment phases with accuracy of the model

TransUnion - Strong Performers

Pros:

One of the most venerated device fingerprinting and reputation databases
Augments device analytics with identity and phone number reputation-based risk scoring
Superior solution vision
Innovation potential as indicated by technical employee staffing is ahead of others
Differentiated pricing flexibility and transparency
Strong AI/ML risk scoring with user interfaces and APIs for truth marking
Consumer authentication policies and out-of-the-box non-payment/policy abuse fraud models are ahead of competition

Cons:

Solution lacks chargeback management
Admin user management, risk scoring rule management, and case management are behind others evaluated
Reference customers said user management administration currently lacks single sign-on

Appgate - Contenders

Pros:

On-par rule management and customer authentication policies
Includes passwordless authentication and behavioral biometrics

Cons:

DFM user-group community's size lags
DFM solution's pricing flexibility and transparency lag
Innovation potential as indicated by technical employee staffing lags
AI/ML-based transaction risk scoring lags
Out-of-the-box payment transaction fraud detection templates and policies lag

Callsign - Contenders

Pros:

On-par user management
Strong customer authentication policies including behavioral biometrics to track user activity
Identity verification for new account opening

Cons:

Roadmap, size of user-group community, and level of technical employee staffing lag
Solution lags in case management
DFM ROI reporting lags
Integration with third-party payment services providers lags

Cybersource - Contenders

Pros:

Based on Visa's transactional data
High potential for innovation as indicated by technical employee staffing
Effective processes for maintaining and boosting customers' adoption
Strong queue and case management capabilities
Scale of deployment (monetary value of payments handled) is ahead of competition

Cons:

DFM vision, product roadmap, and partner ecosystem lag
User management, AI/ML-based risk scoring, customer authentication policies, ROI reporting, and integration lag
Solution lacks chargeback management
Reference customers rely extensively on vendor's managed services

Experian - Contenders

Pros:

Global fraud management solution integrating with own and partners' fraud management tools
Can connect to vendor's large proprietary databases on consumer credit, consumer marketing, US business credit
Leading future roadmap of enhancements
Strong rule management and AI/ML statistical risk scoring features

Cons:

Vision, levels of technical employee staffing lag
Number of partner ecosystem-led deals and contribution to vendor's DFM revenue lag
Does not have chargeback management
User management, case management, productized support for various payment methods and channels, productized integration, and scale lag
Did not provide reference customers for this evaluation

HUMAN - Contenders

Pros:

Powerful rule management framework
Functional ROI and operational dashboarding and reporting
On-par level of potential of innovation as indicated by technical employee staffing
Partner ecosystem DFM revenue contribution on par

Cons:

Vision, roadmap, user-group community size and internal processes to maintain and boost customer adoption lag
Customer authentication policies and chargeback management are missing
User management, AI/ML-based statistical decisioning, case management, and out-of-the-box productized support for card and other payment types lag
Reference customers mentioned vendor's management console should require multifactor authentication for all logins

Radial - Contenders

Pros:

Provides low manual review rates (less than 2%)
Offers chargeback management with team that fully represents vendors in chargeback process
Vision and pricing flexibility and transparency are on par
Strong productized integration with payment services providers
On-par chargeback management

Cons:

Roadmap, size of user-group community, and levels of technical employee staffing lag
Configuration of AI/ML decisioning is not exposed to customer organizations
Support for payment (card and non-card) and non-payment fraud (policy abuse, scams) are behind competitors
Declined to participate in the full Forrester Wave evaluation process

Riskified - Contenders

Pros:

One of the original DFM offerings with chargeback guarantee
High potential for innovation as indicated by technical employee staffing
Vision, roadmap, and pricing flexibility and transparency are on par
Strong chargeback management capabilities

Cons:

Partner ecosystem's DFM revenue contribution lags
User management, rule management, AI/ML decisioning configuration, customer authentication policies, case management, out-of-the-box payment and channel-based templates, and non-payment fraud management templates lag
Reference customers need biweekly meetings with vendor to keep risk-scoring models effective

FAQs

Q: Which vendors are Leaders in 2023?

A: LexisNexis Risk Solutions, Sift

Q: What does "Leader" mean in Forrester Wave terms?

A: Leaders in the Forrester Wave evaluation demonstrate the strongest current offering and strategy in the digital fraud management market. They have differentiated product visions, robust current capabilities across evaluation criteria, strong technical roadmaps, large user communities, high levels of technical employee staffing for innovation, and strong partner ecosystems. Leaders excel in areas such as rule management, AI/ML-based risk scoring, user management, case management, chargeback management, authentication policies, and support for diverse payment channels and transaction types.

Q: How do I interpret a Forrester Wave?

A: https://www.forrester.com/policies/forrester-wave-methodology/

Report:

Top Vendor Products for Digital Fraud Management in 2023

Digital Fraud Management Vendor Product Comparisons 2023

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FAQs

Q: Which vendors are Leaders in 2023?

Q: What does "Leader" mean in Forrester Wave terms?

Q: How do I interpret a Forrester Wave?

Reference