Spotlight

Report:

The Forrester Wave™: Digital Fraud Management, Q3 2023

How does Forrester define the Digital Fraud Management market in 2023?

Digital fraud management solutions now encapsulate the entire customer lifecycle with increasing focus on retail merchant requirements including payments, chargeback management, and scam/policy abuse detection. The market has evolved beyond standard features like risk-based authentication, device reputation detection, and account takeover detection. Support for all digital channels (web and online apps) and transaction types (card payments, refunds, returns) are key differentiators. Manual risk assessment is no longer viable; organizations require automated and repeatable fraud management processes.

Key Facts for The Forrester Wave™: Digital Fraud Management, Q3 2023 in 2023

How did the Digital Fraud Management market evolve in 2023?

What product features are required to be included in this year's evaluation?

What are the common features of top products in the Digital Fraud Management space?

No common features specified.

Scope Exclusions

Inclusion Criteria

Vendors must, among other requirements:

Offering Strengths — Relative Weighting

Strategy Strength — Relative Weighting

FAQs

Q: What does this research cover?

A: This research provides a comprehensive evaluation of 15 digital fraud management (DFM) providers using 20 criteria across three categories: current offering, strategy, and market presence. It covers vendors' capabilities in user management, rule management, statistical decisioning, customer authentication, case management, chargeback management, and support for various payment channels and transaction types. The evaluation focuses on solutions serving e-commerce and retail verticals.

Q: Who should use this research?

A: Fraud management professionals should use this research to select the right DFM provider for their needs. Organizations looking for automated fraud detection, investigation, and mitigation solutions will benefit from the detailed vendor comparisons. The research is particularly valuable for merchants requiring chargeback management, flexible authentication policies, and investigator-centric case management capabilities. Readers can use the downloadable Excel-based vendor comparison tool to adapt criteria weightings to their specific requirements.

Q: What are the mandatory features of vendors included in this market?

A: Vendors included must have: 1) A complete DFM offering with native, purpose-built features and demonstrated thought leadership through regular product updates; 2) Customer-validated presence in e-commerce and retail as top verticals; 3) Minimum $30 million in annual DFM revenue; 4) Strong mindshare with Forrester clients, appearing frequently in RFPs, shortlists, consulting projects, and competitive vendor discussions.

Q: What are some reasons for not being included in this report?

A:

  • Annual DFM revenue below $30 million threshold
  • Lack of focus on e-commerce and retail verticals
  • Insufficient customer validation or market presence
  • Solutions not purpose-built for DFM with only bolt-on fraud capabilities
  • Limited mindshare among Forrester clients and vendor community
  • Declined to participate in or only partially contributed to the evaluation
  • Did not meet materials submission deadline of June 13, 2023

Q: What should buyers consider when evaluating products in this market?

A:

  • Purpose-built chargeback management capabilities for merchants that seamlessly integrate fraud detection, investigation, and mitigation
  • Flexible user authentication policies including passwordless and multifactor authentication with biometrics support
  • Investigator-centric case management with flexible queue management and case-routing policies
  • Support for all digital channels and transaction types relevant to your business
  • Automated risk scoring with configurable rules and AI/ML models
  • ROI reporting and transparency into fraud reduction metrics
  • Integration capabilities with existing payment processors and technology partners
  • Scalability to handle transaction volumes and monetary values
  • Non-payment fraud detection for policy abuse, returns fraud, and scams
  • Vendor's strategic vision and product roadmap alignment with business needs

Q: How has the Digital Fraud Management market evolved in 2023?

A:

  • Payment and policy abuse fraud is rampant across all verticals including retail
  • Shift from manual risk assessment to automated and repeatable processes
  • Digital fraud management now encompasses the entire customer lifecycle
  • Increasing focus on retail merchant requirements including payments and chargeback management
  • Emphasis on scam and policy abuse detection
  • Support for all digital channels including web and online apps is essential
  • Coverage of diverse transaction types such as card payments, refunds, and returns
  • Chargeback management becoming integrated into digital fraud management process flow
  • Growing adoption of passwordless and multifactor authentication
  • Integration of biometrics and behavioral biometrics
  • Chargeback guarantees gaining popularity to keep fraud costs low and customer experience high

Q: What differentiates Strength of Offering vs. Strength of Strategy?

A: Strength of Offering evaluates current product capabilities including user management, rule management, statistical decisioning, authentication policies, case management, channel/transaction support, fraud detection, chargeback management, reporting, integration, and scale. Strength of Strategy evaluates forward-looking aspects including vision, roadmap, community engagement, innovation potential, partner ecosystem, customer adoption processes, and pricing flexibility. Offering focuses on what the solution can do today; Strategy focuses on the vendor's direction and market approach.

Reference

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