List of 6 Fraud Analytics Startups till 2020 You Must Know About

  • 27 February 2020 | 625 Views | By Mint2Save
Fraud analytics and detection startups

Fraud is an act of deception done by unjustly claiming accomplishments or qualities for financial or personal gain. Mainly two kinds of transaction frauds are dealt. The fraud committed by some merchants and fraud committed by some buyers using stolen credentials. Frauds mainly include the use of stolen credit cards,  making duplicate checks, or causing an accident with the intent for the payout.

Real-time monitoring is very much important, as it helps find frauds on the spot.

Transactions, locations, devices are all tracked to identify the frauds. The frauds plaguing

Indian e-com universe is:

  • Return to Origin
  • Payment fraud
  • Promo Code Fraud
  • Account Abuse

Fraud Detection Techniques

  • Statistical Data Analysis


  • Calculating statistical parameters
  • Regression analysis
  • Probability distribution and modals
  • Data mining

Artificial Intelligence techniques


  • Data mining (Searching through up to millions of transactions)
  • Neural networks (use of suspicious patterns)
  • Machine learning (identifies characters found in fraud)
  • Pattern recognition (detects classes, clusters, and patterns of suspicious behavior)

AI has become instrumental in several real-life applications, and fraud detection is one of its strongest use. Fraudsters keep coming up with newer ways and newer techniques all the time. Digital payment companies forces to continue making better solutions and identifying newer methods to track in frauds on online payment.

A new learning approach in AI keeps help algorithm starts taking decisions of detection and prevention of its own. The intelligence of humans with computing powers of AI will make the fraud detection system extremely easy and up to date.

Types of fraud

Usage of false identities, money laundering, usage of malicious applications,  credit cards, and mobile frauds, are the major fraud prevention startups

In the Insurance field, the major one is a premium diversion. Asset diversion, car accidents, stolen cars, house fire fraud are some of the common frauds in insurance. Fraud committed by Merchants and that which is committed by Buyers are the two main transaction frauds.

Frauds committed by Merchants:

 Fraud merchants collect payment from buyers promising of providing a service or shipping a product but then do not honor the commitment after receiving the payment. To track them, companies go through KYC and online and offline details of their merchants. AI can help automatically verify their KYC documents by using computer-generated algorithms. AI helps detect scams on the merchant’s online footprint and also other platforms.

Frauds committed by Buyers: 

Fraud buyers use stolen credentials for their transactions — credentials such as stolen cards, passwords, mobile phone hacks, phone scams are the common ones. Merchants are here to suffer since they have to refund the money back to the original cardholder despite delivering the product to the fraudster. 

A Distrust gradually creates with the payment company. So such companies need to deploy AI technology to detect and stop transactions with malicious intent.

A Fraud Analyst

Fraud Analyst investigates frauds within each transaction and customer account. Customers usually have banking pattern that typically does not change over the long term. A ‘red flag’ generated when there occurred any suspicious activities that do not fit into normal behavior. 

The analyst contacts the bank branch, account holder and any other intermediate parties that may have come in contact with the transaction. They are responsible for keeping any collected information confidential while working to catch criminals

Some of the top Fraud Analytics Startups 

Below are some of the fraud analytics startups:

  • ThirdWatch 

Launched in 2016, the product offered by the third watch, ‘Mitra’ evaluates and flags every transaction in realtime as fraudulent or genuine based on trust score. User’s browsing behavior analysis, device fingerprinting, location profiles and other evaluation parameters determine the transaction authenticity and in generating the score.

They attained fraud prevention through data, machine learning, and design. The applications integrated with Mitra API, block fraudsters automatically. Also, return to original (RTO) problems have been successfully reduced by more than 80 percent.

ThirdWatch offers a two month free trial period for its clients to validate the efficiency, accuracy before they start to pay. Their solutions used by multiple e-commerce companies in India and the Middle east.

  • TrustCheckr

They identify fraud, fake profiles using Artificial Intelligence and image processing. Various API provided, like phone API, email API, FB API. What they focus more on is client satisfaction. They help identify, enrich and validate your customers.

They are present in 5 industries including FinTech, Lending, Rental Economy, Ridesharing and social media. Company’s software leverages Artificial Intelligence, image processing, and machine learning to identify a person’s profile including age, gender, interests, and income range, enabling the business to identify the fake profile and detect new fraud types using large data sets.

  • Global Data Consortium

GDC provides its clients with one point of access for global electronic identity verification with most countries, the deepest population coverage and the widest selection of data elements to verify against frauds.

Global Data Consortium provides a business solution for those who need to verify the identities of customers. They use KYC and AML regulations. Even social networks are seeking the benefits of verifying the identities of their members.

  • Botman

It is a cloud-based online Ad Fraud Detection platform that detects invalid AD traffic, Leads and classifies them.

They offer their users a higher level of security to analyze and identify spam. Bot, networks the fraudulent traffic, by identifying fake IPs, fake devices to fake sources and abnormal traffic patterns. The invalid Lead Scoring system implemented so that their users never pay for non-converting leads. Users also provided with Multiple user Login support.

  • Zighra

It is one of the leading providers of on-device AI solutions for continuous authentication and fraud detection on mobile and web applications. Zighra’s Sensify ID delivers rapid, real-time behavioral intelligence and powerful security control to validate the right device, right user and right bio-behaviors to secure the transaction. Their platform proactively gathers information and any deviation is flagged immediately to inform user access decisions

  • Socure

Socure is here to provide a lighter side of the business, by making the fraud detection hassle-free. Socuretoon presents a scenario that’s probably not too far-fetched. The identity verification method adopted by them increases auto-approval rates and captures more fraud.

Indian e-commerce expected to jump from $30 billion in 2016 to $ 120 billion by 2020. The E-commerce industry plague multiple kinds of user fraud and abuses like a return to the origin, promo code abuse, delicate item returns, and payment gateway fraud. Noteworthy to mention that money lost due to fraud on the digital transaction is $500 million in India.

Fraud management is important in running an e-commerce business. Fraud makes

The merchant, customer, and payment gateway not trustworthy. 

All online payment companies must implement AI into their transactions monitoring process, as it can create trust in their customers. It will thus make a safe and secure platform for their users.

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