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November 13, 2016

Who are Siftscience competitors?

Who are Siftscience competitors?

Who are Sift Science’s competitors?

— I see five subtypes of vendors: legacy vendors dedicated to fraud prevention, vendors who offer a solution as part of a bigger portfolio, payment service providers, do-it-yourself competitors, and startups.

First, as Shoshana Maraney mentioned, there are legacy vendors with solutions dedicated to fraud prevention, e.g., CyberSource by Visa, Accertify by American Express, ClearSale (from Brazil), and ThreatMetrix. In my understanding, these solutions are best suited for large e-merchants. As expected, these solutions provide complex workflows and configuration possibilities, but the learning curve is likely higher as are the integration and operation costs.

Second, you have a series of vendors that work in analytics or cybersecurity and that provide, as part of their portfolio of solutions, a solution that addresses credit card fraud. Notable vendors in this category are SAS Institute, Palantir Technologies, Falcon Fraud Manager by FICO, and NetReveal by BAE Systems. Given their expertise, it’s pretty natural for these companies to have solutions in this domain, but this is not their main product.

Third, you have the fraud prevention modules proposed by payment service providers (PSP) such as Braintree by PayPal, Worldpay, Adyen, Worldline by Atos, and Ingenico. I am not sure if each PSP has a module of its own, but this is definitely a must for large PSPs, especially those addressing retailers with a high risk of payment fraud. The advantage of these solutions is that, a priori, integration is limited since you already opted into the PSP. However, their disadvantage may be the lower performance as compared to dedicated solutions and their hidden costs (e.g., errors).

Then, you have the do-it-yourself solutions. That’s the most basic solution for many e-merchants, particularly when they have the technical expertise in-house. However, the drawback of this approach is the fraud prevention algorithms’ maintainability over time. The algorithms are likely to lead to more and more errors, which could cost a lot more money in the long run than trusting a dedicated vendor from day one.

Finally, you have a series of startups dedicated to fraud prevention. Sift Science is one example of this, but as Shoshana Maraney mentioned, you also have Riskified, Signifyd, Forter, Trustev, Feedzai, and iovation. I would also add Kount, Simility, Ravelin, and smaller vendors like preCharge, UnFraud, and Ubivar. These startups are where the innovation is, e.g., in terms of algorithms, workflows, cost reductions, and engineering.

I hope this information helps. As usual, feel free to reach out with questions or comments.

Fabrice | Book