The FraudLabs integration is a component used by the Order plugin, but yes, it was originally written by another party (Hexasoft Development). The FraudLabs integration is rather simple, making an API call to verify the customer information against a fraud score to determine whether to deny either:
The customer from creating an account during signup
The customer from creating an order during checkout
In either case (depending on your configured Anti-Fraud Frequency setting), if the customer encounters an error with these actions and re-submits their information again, another fraud check will be triggered.