AI-powered fraud prevention solution combining behavioral biometrics and transaction analysis for SMB e-commerce merchants and crypto payment processors.
FraudShield 360 addresses the $4.1B SMB fraud prevention gap with machine learning-powered behavioral biometrics. Designed for merchants processing <€5M annually, it offers enterprise-grade protection at mid-market pricing through adaptive risk scoring and crypto-native chargeback automation.
Core Functionality
Real-time analysis combining keystroke dynamics and device fingerprinting with transaction patterns. Features include:
- Self-learning ML models updating every 72h
- Merchant dashboard with chargeback automation workflows
- Pre-built plugins for Shopify/WooCommerce
- Crypto transaction anomaly detection
Target User and Segment
Primary clients:
- E-commerce SMBs (50-500 daily transactions)
- Crypto payment gateways
- Emerging market fintechs
Recommended Tech Stack
- Backend: Python/Node.js + TensorFlow
- Behavioral ML: PyTorch Biometric Modules
- Cloud: AWS Fraud Detector + GCP AI Platform
- Frontend: React Dashboard with D3.js visualizations
Estimated MVP Costs
1,300 development hours at €100/hr + 15% buffer:
- Backend infrastructure: €40,000
- Fraud detection algorithms: €30,000
- Security/compliance: €20,000
- Total: €117,000-€143,000
SWOT Analysis
Strengths: 40% cheaper than SEON
Weaknesses: Requires 6-month transaction history
Opportunities: 82% SMB fraud tool gap
Threats: Cloudflare expanding into biometrics
First 1000 Customers Strategy
- Shopify App Store listings (40% acquisition)
- LinkedIn ABM campaigns @ €85/lead
- Crypto processor referral bonuses
- CAC: €180-€220/merchant
Monetization
Tiered SaaS pricing:
- Starter: €99/mo (basic analytics)
- Pro: €299/mo (API access)
- Enterprise: €899/mo (custom rules)
Break-even at 722 customers (€632k ARR)
Market Positioning
Differentiates through DACH-first strategy targeting German-speaking merchants with 35% lower chargeback rates than US counterparts. Competes against Signifyd’s enterprise focus with crypto transaction specialization.
