How to integrate Fraudlabs pro MCP with Claude Agent SDK

This guide walks you through connecting Fraudlabs pro to the Claude Agent SDK using the Composio tool router. By the end, you'll have a working Fraudlabs pro agent that can screen this new order for fraud risk, send sms otp to verify customer phone, get analysis result for order 123456 through natural language commands. This guide will help you understand how to give your Claude Agent SDK agent real control over a Fraudlabs pro account through Composio's Fraudlabs pro MCP server. Before we dive in, let's take a quick look at the key ideas and tools involved.

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Api Key

FraudLabs Pro is an online payment fraud detection service for e-commerce and merchants. It helps minimize chargebacks and revenue loss by detecting and preventing fraudulent transactions.

8 Tools

Introduction

This guide walks you through connecting Fraudlabs pro to the Claude Agent SDK using the Composio tool router. By the end, you'll have a working Fraudlabs pro agent that can screen this new order for fraud risk, send sms otp to verify customer phone, get analysis result for order 123456 through natural language commands.

This guide will help you understand how to give your Claude Agent SDK agent real control over a Fraudlabs pro account through Composio's Fraudlabs pro MCP server.

Before we dive in, let's take a quick look at the key ideas and tools involved.

Also integrate Fraudlabs pro with

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TL;DR

Here's what you'll learn:
  • Get and set up your Claude/Anthropic and Composio API keys
  • Install the necessary dependencies
  • Initialize Composio and create a Tool Router session for Fraudlabs pro
  • Configure an AI agent that can use Fraudlabs pro as a tool
  • Run a live chat session where you can ask the agent to perform Fraudlabs pro operations

What is Claude Agent SDK?

The Claude Agent SDK is Anthropic's official framework for building AI agents powered by Claude. It provides a streamlined interface for creating agents with MCP tool support and conversation management.

Key features include:

  • Native MCP Support: Built-in support for Model Context Protocol servers
  • Permission Modes: Control tool execution permissions
  • Streaming Responses: Real-time response streaming for interactive applications
  • Context Manager: Clean async context management for sessions

What is the Fraudlabs pro MCP server, and what's possible with it?

The Fraudlabs pro MCP server is an implementation of the Model Context Protocol that connects your AI agent and assistants like Claude, Cursor, etc directly to your Fraudlabs Pro account. It provides structured and secure access to your fraud detection and order screening tools, so your agent can perform actions like screening transactions, sending SMS OTPs, retrieving fraud analysis results, and managing reseller subscriptions on your behalf.

  • Real-time fraud screening for orders: Instantly have your agent assess the risk of new transactions before fulfillment to minimize chargebacks and detect suspicious activity.
  • Automated SMS OTP verification: Directly send one-time passwords to customers via SMS and verify phone numbers for added transaction security.
  • Retrieve and analyze fraud results: Quickly pull fraud analysis reports on previously screened orders for smarter decision-making and audit trails.
  • Feedback and continuous learning: Submit order feedback—approved or rejected—to improve future fraud detection accuracy and adapt to evolving threats.
  • Reseller account management: Automate account creation and manage subscription plans for resellers directly from your agent, streamlining onboarding and upgrades.

What is the Composio tool router, and how does it fit here?

What is Composio SDK?

Composio's Composio SDK helps agents find the right tools for a task at runtime. You can plug in multiple toolkits (like Gmail, HubSpot, and GitHub), and the agent will identify the relevant app and action to complete multi-step workflows. This can reduce token usage and improve the reliability of tool calls. Read more here: Getting started with Composio SDK

The tool router generates a secure MCP URL that your agents can access to perform actions.

How the Composio SDK works

The Composio SDK follows a three-phase workflow:

  1. Discovery: Searches for tools matching your task and returns relevant toolkits with their details.
  2. Authentication: Checks for active connections. If missing, creates an auth config and returns a connection URL via Auth Link.
  3. Execution: Executes the action using the authenticated connection.

Step-by-step Guide

Step by step09 STEPS
1

Prerequisites

Before starting, make sure you have:
  • Composio API Key and Claude/Anthropic API Key
  • Primary know-how of Claude Agents SDK
  • A Fraudlabs pro account
  • Some knowledge of Python
2

Getting API Keys for Claude/Anthropic and Composio

Claude/Anthropic API Key
  • Go to the Anthropic Console and create an API key. You'll need credits to use the models.
  • Keep the API key safe.
Composio API Key
  • Log in to the Composio dashboard.
  • Navigate to your API settings and generate a new API key.
  • Store this key securely as you'll need it for authentication.
3

Install dependencies

npm install @anthropic-ai/claude-agent-sdk @composio/core dotenv

Install the Composio SDK and the Claude Agents SDK.

What's happening:

  • @composio/core provides Composio integration for Anthropic
  • @anthropic-ai/claude-agent-sdk is the core agent framework
  • dotenv/config loads environment variables
4

Set up environment variables

bash
COMPOSIO_API_KEY=your_composio_api_key_here
USER_ID=your_user_id_here
ANTHROPIC_API_KEY=your_anthropic_api_key_here

Create a .env file in your project root.

What's happening:

  • COMPOSIO_API_KEY authenticates with Composio
  • USER_ID identifies the user for session management
  • ANTHROPIC_API_KEY authenticates with Anthropic/Claude
5

Import dependencies

import 'dotenv/config';
import readline from 'node:readline';
import { Composio } from '@composio/core';
import { query, type Options } from "@anthropic-ai/claude-agent-sdk";

dotenv.config();
What's happening:
  • We're importing all necessary libraries including the Claude Agent SDK and Composio
  • The dotenv.config() function loads environment variables from your .env file
  • This setup prepares the foundation for connecting Claude with Fraudlabs pro functionality
6

Create a Composio instance and Tool Router session

async function chat() {
  const { COMPOSIO_API_KEY, USER_ID } = process.env;
  if (!COMPOSIO_API_KEY || !USER_ID) {
    throw new Error('COMPOSIO_API_KEY and USER_ID required in .env');
  }

  const composio = new Composio({ apiKey: COMPOSIO_API_KEY });

  // Create Tool Router session for Fraudlabs pro
  const session = await composio.create(USER_ID, {
    toolkits: ['fraudlabs_pro'],
  });
  const mcpUrl = session?.mcp.url;
What's happening:
  • The function checks for the required COMPOSIO_API_KEY environment variable
  • We're creating a Composio instance using our API key
  • The create method creates a Tool Router session for Fraudlabs pro
  • The returned url is the MCP server URL that your agent will use
7

Configure Claude Agent with MCP

const options: Options = {
  permissionMode: 'bypassPermissions',
  mcpServers: {
    composio: {
      type: 'http',
      url: mcpUrl,
      headers: { 'x-api-key': COMPOSIO_API_KEY }
    }
  },
  systemPrompt: 'You are a helpful assistant with access to Fraudlabs pro tools via Composio.',
  maxTurns: 10,
};
What's happening:
  • We're configuring the Claude Agent options with the MCP server URL
  • permissionMode: 'bypassPermissions' allows the agent to execute operations without asking for permission each time
  • The system prompt instructs the agent that it has access to Fraudlabs pro
  • maxTurns: 10 limits the conversation length to prevent excessive API usage
8

Create client and start chat loop

const rl = readline.createInterface({
    input: process.stdin,
    output: process.stdout,
    prompt: 'You: '
  });

  console.log('\nChat started. Type "exit" to quit.\n');

  let isProcessing = false;

  async function ask(prompt: string) {
    isProcessing = true;
    rl.pause();

    process.stdout.write('Claude is thinking...');
    const stream = query({ prompt, options });

    let firstChunk = true;
    for await (const msg of stream) {
      const content = (msg as any).message?.content || (msg as any).content;
      if (Array.isArray(content)) {
        for (const block of content) {
          if (block.type === 'text' && block.text) {
            if (firstChunk) {
              process.stdout.write('\r\x1b[K');
              process.stdout.write('Claude: ');
              firstChunk = false;
            }
            process.stdout.write(block.text);
          }
        }
      }
    }
    process.stdout.write('\n\n');

    isProcessing = false;
    rl.resume();
    rl.prompt();
  }

  rl.on('line', async (line) => {
    if (isProcessing) return;

    const input = line.trim();
    if (input === 'exit') {
      rl.close();
      process.exit(0);
    }
    if (input) await ask(input);
    else rl.prompt();
  });

  await ask('What can you help me with?');
}
What's happening:
  • The readline interface is created to handle user input and output
  • The query function is used to send the user's input to the agent
  • The chat loop continues until the user types 'exit' or 'quit'
9

Run the application

try {
  await chat();
} catch (error) {
  console.error(error);
  process.exit(1);
}
What's happening:
  • The chat function is the entry point for the application
  • The try-catch block is used to handle any errors that occur

Complete Code

Here's the complete code to get you started with Fraudlabs pro and Claude Agent SDK:

import 'dotenv/config';
import readline from 'node:readline';
import { Composio } from '@composio/core';
import { query, type Options } from "@anthropic-ai/claude-agent-sdk";

async function chat() {
  const { COMPOSIO_API_KEY, USER_ID } = process.env;
  if (!COMPOSIO_API_KEY || !USER_ID) {
    throw new Error('COMPOSIO_API_KEY and USER_ID required in .env');
  }

  const composio = new Composio({ apiKey: COMPOSIO_API_KEY });
  const session = await composio.create(USER_ID, {
    toolkits: ['fraudlabs_pro']
  });
  const mcp_url = session?.mcp.url;

  const options: Options = {
    permissionMode: 'bypassPermissions',
    mcpServers: {
      composio: {
        type: 'http',
        url: mcp_url,
        headers: { 'x-api-key': COMPOSIO_API_KEY }
      }
    },
    systemPrompt: 'You are a helpful assistant with access to Fraudlabs pro tools via Composio.',
    maxTurns: 10,
  };

  const rl = readline.createInterface({
    input: process.stdin,
    output: process.stdout,
    prompt: 'You: '
  });

  console.log('\nChat started. Type "exit" to quit.\n');

  let isProcessing = false;

  async function ask(prompt: string) {
    isProcessing = true;
    rl.pause();

    process.stdout.write('Claude is thinking...');
    const stream = query({ prompt, options });

    let firstChunk = true;
    for await (const msg of stream) {
      const content = (msg as any).message?.content || (msg as any).content;
      if (Array.isArray(content)) {
        for (const block of content) {
          if (block.type === 'text' && block.text) {
            if (firstChunk) {
              process.stdout.write('\r\x1b[K');
              process.stdout.write('Claude: ');
              firstChunk = false;
            }
            process.stdout.write(block.text);
          }
        }
      }
    }
    process.stdout.write('\n\n');

    isProcessing = false;
    rl.resume();
    rl.prompt();
  }

  rl.on('line', async (line) => {
    if (isProcessing) return;

    const input = line.trim();
    if (input === 'exit') {
      rl.close();
      process.exit(0);
    }
    if (input) await ask(input);
    else rl.prompt();
  });

  await ask('What can you help me with?');
}

try {
  await chat();
} catch (error) {
  console.error(error);
  process.exit(1);
}

Conclusion

You've successfully built a Claude Agent SDK agent that can interact with Fraudlabs pro through Composio's Tool Router.

Key features:

  • Native MCP support through Claude's agent framework
  • Streaming responses for real-time interaction
  • Permission bypass for smooth automated workflows
You can extend this by adding more toolkits, implementing custom business logic, or building a web interface around the agent.
TOOLS

Supported Tools

Every Fraudlabs pro action and event your agent gets out of the box.

Create FraudLabs Pro Reseller Sub-Account

Creates a new FraudLabs Pro user account under a reseller account.

FLP Feedback Order

Submit fraud screening feedback to improve FraudLabs Pro's machine learning model.

FraudLabs Pro Screen Order

Tool to screen orders for fraud.

Get FraudLabs Pro Order Result (v2)

Tool to retrieve an existing transaction from FraudLabs Pro fraud detection system using the v2 API.

Get SMS Verification Result

Verify an OTP (one-time password) received via SMS.

Send SMS OTP Verification

Sends an SMS message containing a one-time password (OTP) to verify a user's phone number.

Subscribe Reseller Plan

Tool to subscribe a reseller account to a specific plan.

Test Order Status Changed Webhook Delivery

Tool to send a test webhook payload to the provided callback URL for FraudLabs Pro order status change notifications.

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FAQ

Frequently asked questions

With a standalone Fraudlabs pro MCP server, the agents and LLMs can only access a fixed set of Fraudlabs pro tools tied to that server. However, with the Composio Tool Router, agents can dynamically load tools from Fraudlabs pro and many other apps based on the task at hand, all through a single MCP endpoint.

Yes, you can. Claude Agent SDK fully supports MCP integration. You get structured tool calling, message history handling, and model orchestration while Tool Router takes care of discovering and serving the right Fraudlabs pro tools.

Yes, absolutely. You can configure which Fraudlabs pro scopes and actions are allowed when connecting your account to Composio. You can also bring your own OAuth credentials or API configuration so you keep full control over what the agent can do.

All sensitive data such as tokens, keys, and configuration is fully encrypted at rest and in transit. Composio is SOC 2 Type 2 compliant and follows strict security practices so your Fraudlabs pro data and credentials are handled as safely as possible.

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