Top 6 Financial Fraud Detection Softwares

Explore how Financial Fraud Detection Softwares work and choose the best fraud investigation company available in the market.

Alankrit Gupta

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Top 6 Financial Fraud Detection Softwares
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This blog addresses the pressing need for sophisticated financial fraud detection software amidst the rising threats within cyberspace and underscores the pivotal role of technology in bolstering our economic defenses. We delve into the intricate domain of financial fraud, examining the capabilities and features of advanced detection software that serve as guardians of financial integrity in our interconnected digital landscape.

Financial fraud is defined as an unlawful act aimed at financial gain through deceit. It encompasses:

  • Intentional deception involving transactions for personal profit.
  • Stealing money or assets from individuals or entities by means of deceit.
  • Unauthorized and unethical handling of financial resources.
  • Alteration, forgery, and tampering with accounting records.
  • Deliberate misstatement or omission of financial information, abuse of accounting principles, and the presentation of misleading or false financial reports.

In today's digital era, executing financial transactions online has become commonplace, facilitating daily activities. However, this convenience also introduces the risk of online scams. As technology advances, so do the methods employed by cybercriminals to exploit vulnerabilities in online financial systems.

Why a business needs a financial fraud detection?

Businesses require Financial Fraud Detection Software for several critical reasons:

  1. Risk Mitigation: It significantly reduces the risk of financial loss due to fraudulent activities by detecting anomalies and suspicious behaviors in transaction data, preventing potential fraud before it impacts the business.
  2. Regulatory Compliance: Ensures adherence to financial regulations and standards, avoiding legal penalties and sanctions that can arise from failing to prevent fraud.
  3. Enhanced Security: Provides an additional layer of security to protect sensitive financial information and customer data from unauthorized access and theft.
  4. Operational Efficiency: Automates the process of monitoring and analyzing financial transactions, reducing the need for manual oversight and thereby increasing operational efficiency and accuracy in fraud detection.
  5. Reputation Management: Helps maintain customer trust and business integrity by proactively identifying and addressing fraudulent activities, which is essential for long-term success and brand reputation.

Overall, a financial fraud management software helps companies identify fraud and prevent access to sensitive data for transactions. As the global economy is fueled by digital transactions, words like 'fraud detection softwares' have been more in trend. As financial transactions are performed over an online platform, the risk of fraud activities increases, which demands advanced solutions to protect sensitive financial data.

Types of financial frauds

  1. Identity theft - When someone steals your personal information, such as Social Security Number(SSN), credit card information, and your bank account number, Identity theft happens. Various ways are practiced by scammers to steal information, they could even search the trash of a bank just to check your previous statements to gather the details.
  2. Credit card fraud - The unauthorized use of a debit or a credit card to make scams, or to copy their details refers to Credit card Fraud. The victim’s personal Identifying Information (PII) is used by a criminal to take control of their account and play with their funds. The details must have been stolen or found on the dark web.
  3. Investment fraud - Investment fraud is a white-collar crime, and it happens when someone purposely misleads or tricks an investor to gain financial gain. It is illegal for any party to hide material information about investments–such as the risks involved–to induce investors into investing.
  4. Payroll fraud - Payroll fraud happens when a person, in an illegal way, changes the company's payroll system to gain their benefit by manipulating the employee compensation. It’s a kind of fraud that an employee or employer can commit.
  5. Invoice fraud - The fraudsters engaged in the fraud generally know the relationship between vendors and organizations. Most of the details are known by the fraudsters such as when a vendor sends an invoice or when they're usually paid. All of this makes the victim believe that the fraudsters are genuine. The companies mostly realize that they have been frauded when the original vendor comes to them with the original invoices/bills carrying due payments.
  6. Phishing - A phishing attack is very often used to steal user data—can include credit card details, login information, and personal information. The links are shared by a fraudster which makes a user access the links.

How Software investigate financial fraud?

When questions like ‘How to investigate financial fraud?’ arises, the financial fraud detection software solutions answer it well.

Fraud Investigation Software figures out the ways and connections by the amount of data that is delivered for software to trace and detect fraud. The data is extracted so that the fraudster and the fraud itself can be caught and stopped. These kinds of softwares help you learn about how frauds happen at your company so that they are paused.

1. Data collection:

To collect and study the relevant information to examine, and prevent defrauding activities in a financial sector is referred to as Data Collection in the detection of financial fraud. There are many ways used to understand irregular patterns, transactions, and behaviors that would make it possible to detect a fraud that's about to happen, is happening, or has happened.

2. Entity extraction:

Entity extraction in relation to financial fraud sometimes reveals information that can be crucial for fraud detection. The information could be found in text documents, social media, or emails, by which the comprehension of the pattern of financial fraud is done. The procedure includes the identification and extraction of suitable entities from a set of data that may also be amorphous.

3. Tracking:

The tracking refers to the continuous monitoring and analysis of the transactions, behaviors, and patterns over time to identify and respond to fraud activities.

4. Asset Discovery:

The discovery of assets that are related to the fraud, which may be an account record, instruments used, or the account holdings. It is an important process to understand the landscape that is financially related to an individual.

Read More: The Best Alternative to Microsoft Rules Engine in 2024

Top 6 Financial Investigation Softwares

Here’s a sneak peek into 6 great Financial Investigation Softwares, leading the financial fraud detection software market, that would easily help you protect your data, funds, and company.

Here are the best 6 financial investigation software available in the market:

1. Nected

Nected is a low-code/no-code rule engine and workflow automation platform designed for product, growth, and tech teams to launch dynamic workflows fast, experiment more & iterate faster, all with the least effort. It empowers tracking of the records and data. 

To cope with the frauds, you can easily automate the payrolls using dynamic payouts, which are calculated based on preferred criteria on incentives, penalties, and fees providing fair compensation to the user and improving your financial accounting. It can help reduce Payroll Fraud on your financial data.

Dynamic Payout - Dynamic payout is calculated based on preferred criteria on incentives, penalties, and fees providing a fair compensation to the user improving your financial accounting.

Use of conditionals - by the use of conditional statements in the datasets, you can set criteria for the alerts, and if the records are changed, you’ll know it's happening. 

Let’s take a real world example:

Let's look at a Nected’s feature; below—Payout for a teacher is based on the certain number of students that comes under, If a teacher manipulates the number or students and create fake entries, the predefined conditions will be deviated, and after detecting the suspicious activity, software itself will mark the activity as not authorized as per conditionals.

  • With easy automation tools, without much knowledge of the code, your datasets are monitored in real-time, so that you are safe from any fraudulent activity and can keep an eagle eye over your datasets. .

While using Nected, you’re all covered with the spectacular features, and allowed to:

  • Empower Non-Tech Teams—create required rules and conditions for your data with low code no code interface easily. Save time and effort.
  • Secure & Scalable—Built on industry best-practices to scale cost-effectively. Optional on-premise installation to keep your data safe and secure.
  • Real-time Adaptation—Modify rules rapidly within a few minutes and adapt on a real time basis, adjusting to your required condition to keep the record safe.
  • Automated Data-Driven Decision Making—Integrate your data at one place and automate complex business logics and rules to automate fraud detection without needing manual intervention.
  • Limitless Flexibility and Customization—Customize to write any complex condition as well as set any custom output using customJS code, adapting seamlessly to specific business & customer needs.

  • Nected allows you to seamlessly integrate the application with your desired database and build any complex rules type easily. 
  • Being fully customizable and flexible, so that you feel the freedom to have control over your data and set up the conditions to keep it secure your way.

2. Chorus

Chorus Financial helps to capture the data, analyze it, and then report on the illegal activities. It searches for patterns to understand the movements of funds and keep an eye on the loaded data. Which then reduces the risk of financial fraud.

Key features:

  • Cleanse and analyze all data – Upload any financial data like bank statements, Suspicious Activity Reports (SARs) 
  • Detect patterns instantly – Group data sets to reveal patterns and trends, such as transaction type.
  • Generate custom reports – Automatically generate bespoke reports to identify connections and build an investigation.
  • Create dynamic visualization – Visualize the flow of funds through several charts and tables to identify financial networks.
  • Save time, maximize efficiency and improve accuracy – 90% reduction in data preparation time

Read More: Simplify Vеndor Paymеnts: A Guidе to Strеamlining Your Opеrations

3. Valid8

Valid8 was born from the pained experience of its founder, Tod McDonald, who was the lead financial investigator for a $150 million Ponzi scheme. Unwinding and investigating such large-scale scams was not easy manually. Valid8 helps to get accurate financial data that can withstand cross-examination.

Key features: 

  • Allows adding transactions from new accounts, appending checks and depositing slip data, grouping and categorizing transactions with ease.
  • Provides automated reconciliation to visualize missing, duplicate, and incorrect data for 100% accuracy.
  • Transforms native or non-native PDF statements in any format into a database of evidence.

4. ScanWriter - By Personable

ScanWriter by Personable is a financial investigation software. It offers data entry automation with accuracy. It helps to detect the flow of datasets by analyzing the flow of data to reveal patterns. It helps data gathering and evaluation easily. ScanWriter provides an immediate data analytic summary within minutes.

Key features:

  • Handles any document - You can capture information from any document, including bank statements, and more. 
  • Collect information from checks - don't worry about converting or bulk-scanning handwritten checks, ScanWriter takes only 0.5 seconds to process each scan. 
  • Provides reconciled data – Cleaning and reconciling data to prepare for analysis is a time-consuming task in itself. 
  • Provides built-in models for data visualization - you no longer need to create complex models such as "cash flow" or "track money".

5. FraudFindr

FraudFindr is a cloud-based company that works on a forensic accounting tool that helps individuals and agencies solve monetary scam cases easily. The software is capable of detecting suspicious activity in seconds and alerts the users to review the situation.

Key features: 

  • The software uses an algorithm to automatically detect and flag suspicious activity.
  • FraudFindr summarizes transaction data, attributes spending to victim/suspect, and flags fraud/suspicious activity. 
  • Designed to be easy to use, with a simple drag-and-drop report builder.

6. Strongbox AI

Strongbox AI is a cloud-based financial data automation and analysis platform that assists professionals and financial services companies in collecting and processing financial data from their business clients. 

Key features: 

  • StrongBox AI performs the data value completeness, reliability and forensics month in and month out. This will help you quickly identify the relevant information. 
  • It allows you to connect directly to a third-party accounting system, that way you will immediately get all the information you need for your study. 
  • You can easily search and filter the necessary criteria, the software provides access to event-level data for all periods.
  • You can download a user-friendly Excel spreadsheet that can be customized according to the company's needs.

Read More: Python Rule Engines: Automate and Enforce with Python

Comparing the Best Fraud Detection Software Companies:

Parameter Nected Chorus Valid8 ScanWriter FraudFindr Strongbox AI
Platform Type Low-code/No-code Data Analysis Financial Analysis Data Entry Automation Forensic Accounting Data Automation
Key Features Dynamic Payout, Conditional Alerts, Real-time Monitoring Data Cleansing, Pattern Detection, Custom Reports, Visualization Transaction Grouping, Automated Reconciliation, PDF Data Transform Data Entry Automation, Immediate Analytic Summary Automatic Detection, Transaction Summarization Data Completeness, Direct Accounting System Connection
Specialization Workflow Automation, Fraud Detection Financial Data Analysis, Fraud Detection Ponzi Scheme Investigation, Financial Auditing Data Gathering, Pattern Analysis Forensic Accounting, Fraud Detection Financial Data Collection, Processing
Automation Capabilities High Moderate High High High High
Customization High (CustomJS for complex conditions) Moderate (Custom Reports, Visualizations) Moderate Low Low (Drag-and-drop report builder) Moderate (Customizable Excel exports)
Target User Product, Growth, Tech Teams Financial Analysts, Investigators Financial Investigators, Auditors Financial Analysts, Accountants Individuals, Agencies Financial Professionals, Services


The losses that people or companies go through as per reports could reach to $41 billion by 2027. Various financial fraud tricks are used by fraudsters to scam big companies, organizations, and even people.

It has become necessary for businesses to find some really good solutions that can easily help to combat the war that has been initiated by scammers over the internet which is always growing vastly on the interconnected network.

Just as the picture keeps getting bigger and bigger, you must keep the transactions, records, and financial details in a safer place, and also keep an eye on them.

And now, when you have read enough about how choosing the best financial fraud detection software for your company could be one of the best decisions. Here are the features you must look up to for the software you’re going to choose.

  1. Scalability - The tool you are going to choose must be scalable to even larger datasets and complex scenarios. Nected provides you with seamless scalability across the platform along with the cutting-edge technology of today—connect with your desired database and stay on top of the edge by using the latest data tracking, and automation tools. Built on industry best practices to scale cost-effectively. Optional on-premise installation to keep your data safe and secure.
  2. Study the business requirements - The cost of your company’s software needs can easily be managed if they are considered and given good attention to analyze what is exactly needed. Sometimes the capital is overspent on the features that are expensive. A good investment can really cure your headache down the road by providing you with assurance of safety. Companies can invest in solutions that provide the best of what they need.
  3. Key Features To Be Considered -
  • Should have Limitless Flexibility and Customization services
  • Must Empower Non-Tech Teams
  • Real-time Adaptation
  • Rapid Personalization, Experimentation
  • Have to be automated Data-Driven Decision Making
  1. Ease of use - Fraud prevention software should be easy to use and implement in your company. Look for software that has an intuitive user interface and a smooth implementation.
  2. Integration - Fraud prevention software must integrate effectively with other business systems your company uses, such as your accounting or CRM system.


Q1. How is financial fraud detected?

Fraud Investigation is easier with the help of Fraud Investigation Software. They spot the practices and connections by the amount of data that is delivered for software to trace and detect fraud. The data is extracted so that the fraudster and the fraud itself can be caught and stopped. These kinds of softwares help you learn about how frauds happen at your company so that they are paused.

Q2. How is AI used in Financial Fraud Detection?

Artificial Intelligence (AI), can help in keeping an eye on the operations that are happening. Some of the features it possess to keep an eye to protect a fraud are:

  • Continuous learning
  • Natural Language Processing
  • Behavioral analysis
  • Automated anomaly detection

Q3. What are the best fraud detection software companies?

The best fraud detection software could really help you keep your business safe.

Q4. What Famous financial frauds happened in history? 

  1. Satyam Computers scam - 

The Satyam scandal involves a fraud of Rs. 7,800 crores. The scandal related to Satyam's capitalization, had a major impact on the market, causing the stock prices to fall by 78% to Rs. 30.70 in a single day on BSE. 

Ramalinga Raju, the founder and chairman of Satyam Computer Services, and a small group of accomplices increased sales, earnings, formed bank statements, and also faked their invoices inflating the number of customers in order to commit the whole fraud.

  1. ABG Shipyard scam -

A significant scam worth ₹22,842 crores spanned over five years, ABG Shipyard took loans from a consortium of banks (led by ICICI Bank, IDBI Bank, and later SBI Bank) in 2001. According to the CBI, ABG Shipyard received loans from 2005, and their account was declared NPA in 2013 when they failed to repay them.

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