Feedzai and Form3 Win Datos Insights 2024 Impact Award for Best Scam/APP Prevention Innovation

Lisbon, Portugal, August 20, 2024 — Feedzai, a global leader in fraud prevention and financial crime management, together with its customer Form3, are proud to announce that they have been recognized as the winners of the prestigious Datos Insights 2024 Impact Award in Fraud & AML for Best Scam/APP Prevention Innovation. This award highlights the groundbreaking collaboration between Feedzai and Form3 in developing a first-of-its-kind solution to combat Authorized Push Payment (APP) fraud and uncover money mules.

Innovative Approach to Authorized Payments Fraud Detection and Money Mule Identification

Form3 and Feedzai have jointly created an advanced machine learning model that uniquely evaluates the risk associated with both the sender and the receiver of a transaction. This dual-risk evaluation is crucial not only for preventing APP fraud but also for identifying and eliminating money mules—individuals who are knowingly or unknowingly used by criminals to launder money. By understanding the behaviors and risks of both parties involved in a transaction, the model can identify and prevent fraudulent activities with an unprecedented 95% accuracy, significantly reducing the rate of undetected fraud by banks.

“Our collaboration with Form3 has allowed us to push the boundaries of fraud detection and uncover hidden threats like money mules,” said Pedro Barata, Chief Product Officer at Feedzai. “This recognition from Datos Insights is a testament to the power of innovation and partnership in creating solutions that not only meet current challenges but also anticipate future needs in fraud prevention.”

A Solution with Real Impact on People and Financial Institutions

Scams, particularly APP fraud, exact a terrible emotional and financial toll on both individuals and financial institutions. Victims are often left devastated by the loss of their savings, while banks increasingly face the burden of compensating for these losses. This innovative solution not only helps banks clear their books of bad actors, such as money mules, but it also plays a crucial role in combating the broader scam epidemic. By proactively identifying and removing these threats, financial institutions can significantly reduce their exposure to risk, protect their customers, and ensure compliance with upcoming regulations.

Tailored for the Future of Financial Crime Prevention

The collaboration has resulted in a model that not only detects fraud but also seamlessly integrates into Form3’s account-to-account payment platform. This integration enables real-time transaction scoring, allowing financial institutions to take immediate action on both inbound and outbound transactions. The Form3 Fraud API has been designed to meet the individual needs of each bank, offering flexibility in how the solution is deployed and integrated with existing fraud prevention systems.

“Working with Feedzai has allowed us to develop an industry-first solution incorporating both ‘collaborative intelligence’ and ‘inbound transaction scoring’ that truly addresses the unique complexities of APP fraud,” said Eimear O’Connor, Chief Product Officer at Form3. “This award validates our joint efforts to create a safer and more secure payment ecosystem for all financial institutions and their customers.”

Meeting Regulatory Demands with Innovation

This innovative solution was launched in April 2024, ahead of new regulations from the Payment Systems Regulator that will mandate shared liability for APP fraud in the UK starting in October 2024. By offering a service that detects 95% of previously undetected fraud at market-standard false positive rates, the solution helps banks and financial institutions manage their liability while enhancing customer protection.