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.

About Feedzai:
Feedzai is a leading provider of fraud prevention and anti-money laundering solutions, serving some of the world’s largest financial institutions. Powered by advanced machine learning, Feedzai’s technology secures trillions of dollars in transactions globally, protecting people and businesses from financial crime.

About Form3:
Form3 is the account-to-account payments platform. Founded In 2016, Form3 set out to revolutionize the world of payment processing and disrupt the traditional payment infrastructure model with an always-on, cloud-native, Payments-as-a-Service platform. Providing not only gateway services, its breadth and depth of solutions extend to fraud prevention, payments orchestration as well as data metrics. Today, Form3 is trusted by some of the UK’s and Europe’s biggest Tier1 banks and fastest-growing fintechs to handle their critical payments architecture. Form3 has been included in the 2024 Lazard T100 Index and was listed in the 2024 Top 100 Scale-ups in Europe. The company has also been awarded PayTech of the Year and Team of the Year for Form3’s Engineering Team at the UK Fintech Awards 2024, Accel Euroscape 2023 Top 100 Company, Tech of the Future for Banks & Financial Institutions 2023 by the Paytech Awards, and Engineering Team of the Year 2023 at the Europe Fintech Awards.

Media Contact:
Indigo Wilmann | Global Director, Content Marketing [email protected] 415-515-2830

San Mateo, CA, July 25, 2024 — Feedzai, a leader in the fight against financial crime, is proud to announce its recent recognition by Chartis Research as the top AI-driven anti-fraud platform. Feedzai also secured the #4 position on the overall AI list in the prestigious RiskTech AI 50 2024 ranking. This accolade highlights Feedzai’s exceptional contributions to the field of AI and machine learning for financial risk management.

The RiskTech AI 50 2024 report by Chartis Research is a comprehensive analysis that evaluates the capabilities and innovations of vendors using AI in risk management. The report assesses the application of AI across various aspects, including impact, deployment, strategy, and innovation. Feedzai’s ranking as the leading AI-driven anti-fraud platform underscores its commitment to delivering cutting-edge solutions that help financial institutions detect and prevent fraud.

Key Achievements:

• Top AI-Driven Anti-Fraud Platform: Feedzai’s platform utilizes advanced AI and machine learning algorithms to provide real-time fraud detection and prevention, offering unparalleled accuracy and efficiency.
• #4 Overall in AI Ranking: Feedzai’s position as a top-tier AI-driven platform among a competitive field of vendors reflects its innovative approach and significant impact on the financial industry.

“We are honored to be recognized by Chartis Research as the leading AI-driven anti-fraud platform,” said Pedro Barata, Chief Product Officer of Feedzai. “We were the first company to introduce AI as a first-class citizen in the battle against fraud, and we have continued to innovate in this field with the invaluable support of our customers. This accolade is a testament to the hard work and dedication of our team, who continuously strive to deliver world-class solutions. Our mission is to ensure the safety and security of financial transactions, and this recognition further validates our efforts.”

Feedzai’s platform is designed to support financial institutions in managing and mitigating risks associated with fraud, money laundering, and other financial crimes. By leveraging AI and machine learning, Feedzai provides institutions with the tools they need to stay ahead of emerging threats and protect their customers.

About Feedzai:
Feedzai is a leading provider of AI-powered risk management solutions, helping financial institutions to detect and prevent fraud and financial crime. With a mission to make banking and commerce safe, Feedzai’s technology processes trillions of dollars annually, safeguarding customers around the world. For more information, visit feedzai.com.

About Chartis Research:
Chartis Research is a leading provider of research and analysis on the global market for risk technology. The RiskTech AI 50 report is a flagship publication that highlights the top companies in the AI-driven risk management space, providing valuable insights into the industry’s leading vendors and emerging players.

Media Contact:
Indigo Wilmann | Global Director, Content Marketing [email protected]

• Feedzai appoints Thomson Reuters veteran David Larson as Chief Financial Officer
• The experienced executive joins the financial crime software unicorn after successfully leading billion-dollar global teams
• Larson brings extensive operational and M&A experience from a number of well known global businesses and his appointment represents Feedzai’s ambitions to scale rapidly and to become a potential consolidator in its market

San Mateo, Calif / Lisbon, Portugal, 2nd May 2024: Feedzai, the market leader in anti-fraud and financial crime software, has appointed corporate finance heavyweight David Larson as its new Chief Financial Officer as the firm enters its phase of growth and expansion. 

Founded in 2011, Feedzai’s RiskOps platform now protects approximately a billion people globally, analyzing over $6 trillion in payments at 3000 transactions per second to prevent fraud. Powered by big data and machine learning, Feedzai has built the most advanced risk management platform, trusted by major institutions worldwide. A global company, with 10 international offices and 600+ employees, Feedzai has firmly established itself as the market leader in fighting financial crime with AI. 

David joins from Thomson Reuters, where he spent nearly 15 years and was most recently its Chief Strategy Officer. He has extensive experience in global finance, corporate development and M&A in large-scale businesses with multiple product lines driving sustainable and profitable organic growth. David was also integral in creating the Governance, Risk and Compliance division for Thomson Reuters, including the acquisition of World-Check (a database used around the world to help identify and manage financial, regulatory and reputational risk and perform KYC) now owned by LSEG.

David’s track record and deep understanding of operational dynamics within larger organizations will provide Feedzai with a valuable advantage as the business continues to scale. His M&A and strategy experience will help Feedzai take advantage of the market opportunity to be a consolidator in the industry. As Feedzai’s CFO, David will be responsible for managing all global financial actions of the business, reporting directly to Feedzai’s founder and CEO, Nuno Sebastião.

On his appointment, David Larson said, “The alarming rise of financial crime is not showing any signs of slowing down and we need real, innovative solutions to stop fraudsters in their tracks. Feedzai’s impressive technology is the solution to staying one step ahead of the criminals. I’ve long admired Feedzai and it’s an honor to join the team building a category leading product in the RiskOps space to help organizations streamline all aspects of customer risk management and protect  billions from the perils of financial crime. I look forward to being a part of this growth journey” 

Nuno Sebastião, co-founder and CEO of Feedzai said, “David’s impressive global leadership experience will be pivotal for Feedzai as we enter this next phase of growth and seek opportunities to consolidate across our space and explore potential M&A activity, as we execute on our vision of being a ubiquitous financial crime risk management service which is core to the architecture of every financial service provider. We have bold ambitions for Feedzai as we continue our mission to use AI to keep consumers safe and protect millions from fraud and financial crime. A world-class leadership team is essential in realizing those goals. David is the perfect hire to help drive this growth and I look forward to working with him closely.”

The appointment comes as Feedzai recently announced a record breaking fiscal year 2024 – led by  88% growth in their behavioral biometrics solution.

Notes to editors:
For more information, contact: Roopa Ramaiya, VP Communications, Feedzai. [email protected] 

About Feedzai: Feedzai is the world’s first RiskOps platform, protecting people and payments with a comprehensive suite of AI-based solutions designed to stop fraud and financial crime. Feedzai is trusted by leading financial institutions to manage critical risk and compliance processes, safeguarding trillions of dollars of transactions while improving the customer experience and protecting the privacy of everyday users. For more information, visit feedzai.com.

• Feedzai’s RiskOps platform now protects approximately a billion people globally, analyzing over $6 trillion in payments at 3000 transactions per second to prevent fraud.

San Mateo, Calif: Lisbon, Portugal: 25th April 2024: Feedzai, a leading provider of financial crime and risk management solutions, today announced record-breaking results for its 2024 fiscal year, delivering a strong combination of revenue growth acceleration and positive free cash flow margins. Business expansion was highlighted by the rapid expansion of Feedzai’s behavioral biometrics business, which grew 88% year-over-year.

The global cost of online payments fraud is expected to grow by 140% by 2028, according to a recent study by Juniper Research. Against this epidemic of rising financial crime levels worldwide, regulators are increasing enforcement and penalties, resulting in growing anti-money laundering (AML) fines and compliance costs.  

Feedzai’s RiskOps platform addresses these challenges, protecting people and payments with a comprehensive suite of AI-based solutions designed to stop fraud and financial crime. Today, Feedzai solutions help defend over 1 billion people from financial crime, safeguarding more than $6 trillion in transactions each year, while helping financial institutions reduce their growing costs of AML compliance. Feedzai’s AI-based technology helps businesses fight fraud across the entire risk-cycle, from new account creation and customer onboarding, to payments and other transactions, to ongoing regulatory  compliance.

Feedzai closed several landmark transactions in FY24, including:

• A record-breaking upsell with a top 10 European bank worth $100M across its multi year term.
• A strategic partnership with a major global systems integrator that includes distribution rights and a commitment to work together to build out a major RiskOps practice within the integrator.
• A major reseller relationship with a major player in the risk, compliance, identity, and investigation space. This large, multi-billion dollar media and data company will promote and sell Feedzai’s behavioral biometrics solution to new markets through its large and international sales channel.
• A multi-year, multi-million ARR (annual recurring revenue) transaction facilitating migration of a US government agency’s fraud detection system to Feedzai’s cloud managed service.

In addition, Feedzai introduced major product and technology improvements to extend its RiskOps vision, notably among these:

• Feedzai introduced Railgun, Feedzai’s next-generation, patented AI engine, which enables enhanced fraud detection accuracy, 4x faster risk strategy update speeds, enabling improved decisions with low latency and scalability.
• Feedzai added new ScamPrevent™ capabilities that deliver industry-leading detection, classification, and interception of the widest variety of payment scams and financial fraud typologies, by combining transactional fraud detection with behavioral biometrics with out-of-the-box AI improvements and support for inbound payments monitoring.
• Feedzai submitted eight new patent applications and was granted six new patents in the US, including critical intellectual property in the areas of automatic performance monitoring, new ways of using graph algorithms to improve fraud detection, model explainability, algorithms to improve model fairness, and our new Railgun AI engine.
• Downloads of Feedzai’s open source contributions more than doubled, reaching over 90 thousand total downloads. Feedzai is a leader in AI fairness and its open-sourced FairGBM algorithm has received industry accolades as a game-changing contribution that makes Fair Machine Learning accessible to all.

In FY24, Feedzai’s product and technology excellence received significant recognition from industry analysts, including Datos Insights, Frost & Sullivan, Chartis, and Quadrant Knowledge Solutions.

• Feedzai was recognized as a Leader in eight separate analyst evaluations, across several RiskOps market segments.
• In three of these, Feedzai’s product offerings received the #1 product rating overall.
• Feedzai is currently the only vendor recognized as a Leader by industry analysts in all three major RiskOps market segments – transaction fraud solutions, AML solutions, and behavioral biometrics solutions.

Nuno Sebastiao, CEO of Feedzai said: “The past year was a successful one for us as we’ve significantly expanded both our operations and product offering, while delivering strong positive cash flow. The need for our RiskOps solutions continues to grow as criminals become more sophisticated, leveraging new technologies like generative AI, and as fraud levels continue to rise globally. As a result, we’re laser-focused on helping our customers succeed by providing the world’s best RiskOps technology and expertise, so they can deliver innovative banking solutions secure from financial crime.”

Notes to editors:
For more information, contact: Roopa Ramaiya, VP Communications, Feedzai. [email protected] 

About Feedzai: Feedzai is the world’s first RiskOps platform, protecting people and payments with a comprehensive suite of AI-based solutions designed to stop fraud and financial crime. Feedzai is trusted by leading financial institutions to manage critical risk and compliance processes, safeguarding trillions of dollars of transactions while improving the customer experience and protecting the privacy of everyday users. For more information, visit feedzai.com.

• New solution offers PSPs inbound and outbound payment fraud intelligence in one solution for the first time

26th March 2024, London – Form3, the cloud-native account-to-account platform, today launches a new, innovative authorised push payment fraud (APP fraud) prevention solution, powered by Feedzai, the market leader in anti-fraud and financial crime software. The new product is the first solution, built using fully supervised machine learning, to leverage collaborative intelligence to understand the behaviour of both the payment sender and recipient, to determine the risk of the payment being made in real-time.

Form3’s new APP Fraud Solution works by combining its account-to-account payment processing with Feedzai’s fraud and financial crime analytics. This produces a model that is trained to identify risk in both the individual sending the money and the person receiving the money. Understanding who is receiving the money is key to preventing fraud, as APP fraud involves impersonation that manipulates the victim into sending the money.

This new solution closes the gaps in intelligence that the fraudsters utilise to be able to use faster payments to target UK consumers and businesses. The solution’s model is then able to detect 95% of fraud at market-standard false positive rates.

Mike Walters, Form3’s CEO, said: “The best way to tackle the rise of APP fraud is the use of collaborative intelligence and cutting edge technologies that allow the real-time identification of scams within the payment message. By bringing together Form3’s payment processing expertise, and Feedzai’s fraud and financial crime solutions, we can tackle APP fraud so that UK banks can make faster payments safer. Feedzai is the solution provider of choice for two of the top four financial institutions in the UK, so we are partnering with a market leader to combat APP fraud.”

With APP fraud losses accounting for nearly £500m per annum, the solution is timely, as it has been developed on the back of new regulation from the Payment Systems Regulator. This sees victims of APP fraud being refunded by their bank from October 2024, with reimbursement now being the responsibility of both the sending and the receiving institutions.

Pedro Barata, CPO at Feedzai, adds: “There is increasing regulation in this space, and rightly so – we’ve got to do everything in our power to protect the end consumer from APP fraud. With reimbursement becoming mandatory from October this year, it’s also in the interests of all banks to collectively ensure they prevent fraud and save huge payouts. By combining the expertise of Feedzai and Form3, we can drastically reduce the level of vulnerability in the payment process and give our customers the real-time intelligence that they need to stop fraudsters in their tracks.”

The partnership underscores Form3’s commitment to ‘doing well by doing good’, employing cutting-edge technology to tackle the pervasive issue of fraud, which has profoundly impacted countless individuals worldwide.

The service will go live in April, with a full rollout in the UK market expected in the summer of 2024 – ahead of the implementation of the new rules in October 2024.

About Feedzai:
Feedzai is the world’s first RiskOps platform, protecting people and payments with a comprehensive suite of AI-based solutions designed to stop fraud and financial crime. Feedzai is trusted by leading financial institutions to manage critical risk and compliance processes, safeguarding trillions of dollars of transactions while improving the customer experience and protecting the privacy of everyday users. For more information, visit feedzai.com.

About Form3
Form3 is the account-to-account payments platform. Founded In 2016, Form3 set out to revolutionise the world of payment processing and disrupt the traditional payment infrastructure model, with an always on, cloud-native, Payments-as-a-Service platform. Providing not only gateway services its breadth and depth of solutions extends to fraud prevention, payments orchestration as well as data metrics. Today, Form3 is trusted by some of the UK’s and Europe’s biggest Tier1 banks and fastest-growing fintechs to handle their critical payments architecture. Form3 has been awarded Accel Euroscape 2023 Top 100 Company, Tech of the Future for Banks & Financial Institutions 2023 by the Paytech Awards, Payments Tech of the Year 2023 at the UK Fintech Awards, and Engineering Team of the Year 2023 at the Europe Fintech Awards.

Contacts:
Feedzai: Roopa Ramaiya, VP Communications, [email protected]

• GASA and Feedzai’s 2023 report reveals nearly a quarter of Americans (23%) fell victim to scammers over the course of the last 12 months, losing an average of $2,663 each
• Three quarters (73%) encountered a scam at least once a month, with Gmail and Facebook posing the greatest threats

San Mateo, Calif., 22nd February 2024 – The rise of fraud in the United States continues apace, costing a huge $159 billion in one year alone, according to new research released today by Feedzai in partnership with the Global Anti-Scam Alliance (GASA). 

The 2023 State of Scams report shows that nearly a quarter (23%) of US citizens parted with their money after falling victim to fraud despite an overwhelming majority (69%) saying they felt confident in their ability to spot a scam before reaching that stage.  

This highlights the sophistication of tactics deployed by scammers and, with further data from the research showing the volume of such scams is also high, there is a great risk to consumers. Nearly three quarters (73%) of those surveyed encountered a scam at least once a month, with a shocking 15% saying they encountered one every single day.  

Gmail and Facebook were by far the most prominent sources of threat, with 53% and 52% of respondents respectively identifying these platforms as the ones on which most scammers tried to contact them last year. With Instagram (22%), WhatsApp (16%) and Google (17%) following closely behind, it is clear that all related parties – big tech, banks, telcos regulators and consumers themselves – must work together to combat and overcome malicious actors. 

With each victim losing an average of $2,663, amounting to 0.6% of total U.S. GDP, more must be done. Urgency and clarity on approach is key. 

Nuno Sebastião, Co-founder and CEO at Feedzai, said: 

“Scammers are relentlessly targeting consumers and, as much as we need and want all our online services from online banking to social media, they do present more opportunities for fraudsters. There are simply more areas of vulnerability for them to exploit. More should be done to both protect and reimburse victims of fraud, and it’s true that banks and financial institutions play a big role here, but this responsibility cannot solely fall on their shoulders.  

“If we are going to stand a chance in the fight against scams we need a collaborative approach – big tech companies, regulators, software providers and consumers must all work together to put measures in place from all angles.  

“It feels like a big job, but it needn’t be hard. Using technology that can continuously provide customer-centric risk-scoring as well as biometric and behavioral pattern analysis, we can learn each consumer’s unique approach and use it to more effectively identify suspicious activity – we can prevent scams before they even happen, and without the consumer even realizing. We’re proud to be partnered with GASA to highlight such an important issue, and to be at the forefront of the fight.” 

Jorjj Abraham, Managing Director at GASA adds: 

“The findings are an important reminder of the scale of the fraud problem facing us all, and this is not just a problem in the U.S. Consumers are savvy, but fraudsters are increasingly sophisticated in their approach, and that means we need an increasingly sophisticated solution to match. Technology is really the only way forward if we’re going to get ahead of the game. If we combine cutting edge tech that prevents scams before they happen with an approach in which we’re not afraid to work together to share insights and knowledge around scams, we can tackle the alarming statistics revealed in our research. We’re proud of the work we’re doing, and Feedzai is crucial in helping us lead the fight so we’re confident of a brighter future.” 

To find out more, read the full report here.

About Feedzai:
Feedzai is the world’s first RiskOps platform, protecting people and payments with a comprehensive suite of AI-based solutions designed to stop fraud and financial crime. Feedzai is trusted by leading financial institutions to manage critical risk and compliance processes, safeguarding trillions of dollars of transactions while improving the customer experience and protecting the privacy of everyday users. For more information, visit feedzai.com.

About GASA:
The Global Anti Scam Alliance (GASA) is a non-profit, bringing together policy makers, law enforcement, consumer authorities, NGOs, the financial sector, cybersecurity, and commercial organizations to share insights and knowledge surrounding scams. For more information, visit gasa.org

Contacts:
Feedzai: Roopa Ramaiya, VP Communications, [email protected]
Global Anti-Scam Alliance (GASA): Sam Rogers, [email protected]

• Feedzai will leverage Mastercard’s Ciphertrace crypto intelligence solutions to reduce the risk of account-to-account fraud flowing into crypto exchanges

San Mateo, Calif, 20 November 2023: Feedzai a financial crime and risk management solution, and Mastercard – a global technology company in the payments industry – are combining technologies to increase crypto fraud protection for hundreds of millions of consumers.

Today, an estimated 40% of scam transactions exit directly from a bank account to a crypto exchange. According to Feedzai’s recent report, The State of Global Anti Money Laundering (AML) Compliance Report 2023, the monitoring of cryptocurrency effectively is still one of the biggest challenges for financial institutions.

Addressing the need to implement effective AML solutions, Feedzai and Mastercard will collaborate to integrate Mastercard’s world-leading crypto intelligence solution, Ciphertrace Armada into Feedzai’s unique RiskOps platform. RiskOps analyzes transaction data totaling over $1.7 trillion annually and offers a comprehensive suite of AI-based solutions designed to stop fraud and financial crime at the source – allowing banks to be alerted in milliseconds when a transaction appears fraudulent.

Ciphertrace Armada allows banks, crypto exchanges, wallets, crypto ATMS and other Virtual Asset Service Providers (VASPs) to better assess the fraud risk in digital asset transactions. In pairing these technologies together, Feedzai’s customers, who collectively protect over 900 million consumers globally, will now be able to identify and prevent transactions involving fraudulent crypto exchanges before they occur.

The partnership comes just months after Mastercard announced its new solution that helps banks identify scams in account-to-account payments. Using AI, Mastercard Consumer Fraud Risk enables banks to intervene in real time and to stop a payment before funds leave a victim’s account.

The combined intelligence means that financial institutions can stop transactions involving high risk and potentially fraudulent crypto exchanges in real time, alerting the customer to the risk before money leaves their account.

Nuno Sebastião, CEO of Feedzai said, “Mastercard’s commitment to protecting its global customer base from fraud aligns perfectly with Feedzai’s mission. Criminals use crypto as part of their scam strategies, with the scam proceeds often ending up being funneled to an unauthorized or otherwise risky crypto exchange. It also continues to remain a challenge for AML professionals as criminals become ever more sophisticated and money laundering techniques advance.  This global partnership will further empower banks to protect their customers’ against the risks associated with crypto and instill further trust in the ecosystem.” 

Ajay Bhalla, president of Cyber and Intelligence at Mastercard said: “This is an exciting step in our journey to secure the digital ecosystem. We’re providing financial institutions with the insights they need to be able to prevent transactions involving fraudulent crypto exchanges. We are delighted that, through this new partnership, we are able to go further, by helping to stop fraud and payments to scams before they take place, giving customers more choice, security and, most importantly, reinforcing trust.”

About Feedzai: Feedzai is the world’s first RiskOps platform, protecting people and payments with a comprehensive suite of AI-based solutions designed to stop fraud and financial crime. Feedzai is trusted by leading financial institutions to manage critical risk and compliance processes, safeguarding trillions of dollars of transactions while improving the customer experience and protecting the privacy of everyday users. For more information, visit feedzai.com.

About Mastercard: Mastercard is a global technology company in the payments industry. Its mission is to connect and power an inclusive, digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible. Using secure data and networks, partnerships and passion, Mastercard’s innovations and solutions help individuals, financial institutions, governments and businesses realize their greatest potential. With connections across more than 210 countries and territories, it is building a sustainable world that unlocks priceless possibilities for all.

Contacts:
Feedzai: Roopa Ramaiya, VP Communications, [email protected]
Mastercard: Benjamin Carty [email protected]

• Banks and payment service providers across APAC make progress with fraud prevention but it still remains a challenge, finds new report from Feedzai and Chartis

• Scam Prevention in Asia-Pacific: A Survey of Banking and Payment Provider Professionals analyzes the strategies which financial institutions in the region are implementing to detect and prevent scams

• Despite advancements, the report finds scams present a growing challenge in APAC with only 6% of respondents confident in their ability to adapt to the changing nature of scams 

15 November 2023, Singapore: Today, Feedzai, the world’s first RiskOps platform for financial risk management, and Chartis Research, leaders in risk technology research and insights, have released a joint report exploring how financial firms are responding to fraud in the APAC region.

Leading the charge in the global fight against fraud, Feedzai and Chartis’ joint report, Scam Prevention in Asia-Pacific: A Survey of Banking and Payment Provider Professionals will be launched at Singapore FinTech Festival and also coincides with International Fraud Awareness Week . The report surveyed financial crime professionals from 48 banks and 27 payment service providers (PSPs) in Australia, Malaysia, the Philippines, Thailand and Singapore and found that advancements have been made to the approach to scams, with more than 9 in 10 organizations (97%) surveyed having some form of awareness program in place.

Other improvements include better internal touchpoints for scams, with two-thirds of firms surveyed having a regular touchpoint, such as regular briefings or training on identifying fraud as well as an improvement in the use of technology. More than 80% of organizations now use artificial intelligence (AI) in some form to detect fraud. AI-based fraud assessments involve the use of machine learning (ML) algorithms to analyze historical fraud data and identify patterns and anomalies that may indicate fraudulent activity.

However, the report also found that as fraud and scams become more sophisticated, scams present a growing challenge and concern in the region. Increased operational costs were considered the largest impact of fraud and scams. Those in Australia were most likely to cite increased operational costs as the biggest impact of fraud detection (67% of respondents), while those in Singapore were least likely (38%).

Although 46% of respondents felt they had comprehensive scam controls in place, most didn’t feel their firm could adapt to changing typologies fast enough, with only 6% fully confident in their ability to adapt. PSPs are more likely to have comprehensive controls than banks, with 60% of PSPs planning to improve fraud detection controls, compared with 39% of banks.

 With almost 90% of respondents believing that scam reimbursement regulations will be introduced in the next 12 months, banks and PSPs have to prepare. Almost 30% of respondents cited reimbursement as the largest impact of scams. This concern is likely to become more pertinent given expectations around future regulation.

Tom Clifford , Strategic Accounts Director at Feedzai said: “Banks and payment service providers have clearly made progress with fraud prevention, but it still remains a challenge. As fraud and scams continue to evolve and become more sophisticated, the industry needs to continuously adapt to the changing landscape.

“The use of advanced technologies, like AI, has definitely enhanced the ability to detect and prevent scams. While many organizations have comprehensive controls in place, the capability to leverage enterprise data and adapt to the changing fraud landscape remains a significant concern. With potential scam reimbursement regulations just around the corner, banks and payment service providers will need to become more proactive in real-time fraud mitigation.”

Nick Vitchev, Research Director at Chartis said: “Scams pose a grave threat to consumers, institutions, and governments across Asia Pacific. Working with Feedzai, Chartis carried out a study to understand the relative priorities, challenges, and solutions across some of the more dynamic markets.

This survey found that the challenge of detecting and preventing scams is sizeable across the region, and varied across markets.,. The good news is that all of the markets we surveyed are committed to preventing scams via a variety of methods. The other good news is that Asia Pacific already contains institutions and governments that are leading the global fight against scams, and those that may be on the same trajectory can learn from those trailblazers.”

Notes to editors:
Contact

Roopa Ramaiya, VP Communications, Feedzai: [email protected]

About Feedzai: Feedzai is the world’s first RiskOps platform, protecting people and payments with a comprehensive suite of AI-based solutions designed to stop fraud and financial crime. Feedzai is trusted by leading financial institutions to manage critical risk and compliance processes, safeguarding trillions of dollars of transactions while improving the customer experience and protecting the privacy of everyday users. For more information, visit feedzai.com.

About Chartis: Chartis is the leading provider of research and analysis on the global market for risk technology. It is part of Infopro Digital, which owns market-leading brands such as Risk and WatersTechnology. Its mission is to support banks, tech vendors, investment managers and insurers with independent research and advice on all aspects of risk, compliance and financial technology. With its strong customer relationships and deep technology expertise, it is uniquely able to map market trends and vendor landscapes in financial risk, trading, credit, financial crime, GRC, insurance and energy.