A colossal $159 billion lost to fraud and scams, finds new research from Feedzai and the Global Anti-Scam Alliance

February 22, 2024

Archives Press Releases

  • 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 and Mastercard to expand crypto fraud protection for consumers globally

November 20, 2023

Archives Press Releases

  • 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]


New report finds that more than 80% of organizations across APAC are using artificial intelligence (AI) to tackle fraud

November 15, 2023

Archives Press Releases

  • 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
  • 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.


Feedzai and CoreCard Partner to Protect Processing Market Against Rising Fraud Levels using Advanced AI

November 14, 2023

Archives Press Releases

  • The partnership enables CoreCard to further protect its financial services client base with intelligent AI-powered defense systems, while minimizing any friction at the point of sale 
  • CoreCard clients offering credit, debit and pre-paid cards will now have best-in-class fraud protection, as criminal activity levels rise globally
  • By incorporating Feedzai’s fraud detection capabilities into its offered services, Corecard has extended its capabilities as a one-stop-shop for all the key needs of issuers and program managers

November 14th 2023, San Mateo, Calif. Today Feedzai, the leading provider of financial crime and risk management solutions, has partnered with CoreCard, the gold-standard international provider of prepaid and credit technology solutions and processing services to banks and the financial technology and services market.

The partnership will enhance CoreCard’s fraud detection and prevention capabilities to expand on its existing advanced spending control capabilities. The collaboration marks a significant milestone in CoreCard’s commitment to providing comprehensive, cutting-edge services to its clients and reinforcing its position as the leading card management system and processing services provider. 

In today’s rapidly evolving financial landscape, the ever-increasing threat of fraud poses a significant challenge for issuing program managers. CoreCard’s partnership with Feedzai will address this challenge by offering more advanced fraud detection and prevention capabilities, using intelligent AI to monitor for and flag suspicious transactions in nano-seconds with high degrees of accuracy. CoreCard’s selection of Feedzai as a partner was guided by the high demands and expectations of its current and future clients.

CoreCard will use Feedzai’s latest AI Card Transaction feature to support clients issuing credit, debit, and prepaid cards carrying the Visa, Mastercard, Amex, and Pulse logos. The easy to use interface provides a flexible case management system for CoreCard’s processing clients. The client-specific, real-time alerts on transaction and cardholder data enables CoreCard to add predictive model-based fraud detection capabilities. The integration allows CoreCard to manage events quickly and effectively protect cardholders while minimizing friction at the point of sale.

The partnership enhances CoreCard’s longer-term strategy of extending its issuer processing capabilities to include a wider range of value-added services, providing a seamless route to a successful card program.

Brett Barrett, VP of Sales, Feedzai said: “As criminals become more sophisticated and fraud levels rise across the globe, issuers have a huge role to play in protecting consumers. That’s why our partnership with CoreCard to provide its clients with the most advanced fraud detection solutions available is so important. This collaboration underlines our commitment to delivering cutting-edge technology and reinforces our position as a trusted partner in the fight against financial crime.”

Mark Raleigh, COO of CoreCard, comments: “Feedzai’s track record of successfully delivering services to clients and its customer centric approach made them the ideal vendor. The partnership with Feedzai signifies a significant step forward in our commitment to enhancing the security and reliability of our issuer processing services. By integrating Feedzai’s state-of-the-art fraud detection capabilities into our offerings, our clients will be able to protect their cardholders while streamlining their operations.”

 

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 CoreCard Corporation

CoreCard Corporation (NYSE: CCRD) provides the gold standard card issuing platform built for the future of global transactions in an embedded digital world. Dedicated to continual technological innovation in the ever-evolving payments industry backed by decades of deep expertise in credit card offerings, CoreCard helps customers conceptualize, implement, and manage all aspects of their issuing card programs. Keenly focused on steady, sustainable growth, CoreCard has earned the trust of some of the largest companies and financial institutions in the world, providing truly real-time transactions via their proven, reliable platform operating on private on-premise and leading cloud technology infrastructure.  Contact [email protected] or visit www.corecard.com.


Feedzai named as Financial Crime - Enterprise Fraud Category winner by Chartis in its Latest RiskTech100 report

October 20, 2023

Archives Press Releases

  • Feedzai ranked 35th overall in the RiskTech100 for major solution providers in risk and compliance technology, up 13 places from last year and up from 78th place two years ago, reinforcing its cutting-edge technology and innovative AI-first RiskOps approach

20 October 2023, San Mateo, Calif: Today, Feedzai, the world’s first RiskOps platform for financial risk management, has been named as the Financial Crime – Enterprise Fraud category winner by Chartis in its latest RiskTech100 Report . Feedzai was selected for the award over the other vendors in the report, reinforcing its cutting-edge technology approach in tackling fraud.

Feedzai’s position as the top performer in this category is due to the strength of its fraud analytics, which enable it to make precise decisions from vast quantities of data at millisecond latency. Feedzai’s RiskOps approach achieves a single customer risk view across a wide range of use cases, including both fraud and anti-money laundering.

Feedzai stood out through its ability to interrogate data and analytics through an easy to use interface and flexible and comprehensive workflow and case management. Chartis also set Feedzai apart from other vendors in this category due to its strong focus and clarity in strategy, focusing on core capabilities that align with the direction of the market.

In addition to being named as the Enterprise Fraud Category Winner, Feedzai ranks 35th for major solution providers in risk and compliance technology, up 13 places from 2023 and up from 78th place two years ago. The Chartis RiskTech100 Report ranks the world’s major solution providers in risk and compliance technology. The rankings reflect its analysts’ opinions, along with research into the risk management space including market trends, participants, expenditure patterns, regulatory and governance standards and best practices.

Pedro Barata, Chief Product Officer at Feedzai said, “Feedzai is honored to not only have improved 43 places in the last two years as a risk solution provider, but to now have won the Enterprise Fraud category, which we believe reflects the strength of our platform and the significant investments we make in R&D. The fraud landscape has shifted dramatically in the last few years, requiring an evolution of fraud management technologies. Our Transaction Fraud for Banking platform provides a future-proof solution for enterprises to protect their consumers whilst providing them with the best user experience.

Feedzai continued its strong performance in the RiskTech100, rising 13 places – a reflection of continued development in its analytics capability across its fraud and AML suites, and the flexibility and scalability of its platform,” said Sid Dash, Chief Researcher at Chartis.Moreover, renewed clarity in Feedzai’s strategic direction has enabled it to commercialize its product developments.

 

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.

Media Contacts:
Feedzai [email protected]


Feedzai positioned as the Leader in the 2023 SPARK MatrixTM for Behavioral Biometrics by Quadrant Knowledge Solutions

August 23, 2023

Archives Press Releases

  • The Quadrant Knowledge Solutions SPARK Matrix™ provides competitive analysis & ranking of the leading vendors.
  • Feedzai, with its comprehensive technology and customer experience management, has received strong ratings across the parameters of technology excellence and customer impact.

August 23rd, 2023: Quadrant Knowledge Solutions announced today that it has named Feedzai as a 2023 technology leader in the SPARK Matrix: Behavioral Biometrics, 2023.

The Quadrant Knowledge Solutions’ SPARK Matrix™ includes a detailed analysis of global market dynamics, major trends, vendor landscape, and competitive positioning. The study provides competitive analysis and ranking of the leading technology vendors in the form of its SPARK MatrixTM. The study offers strategic information for users to evaluate different provider capabilities, competitive differentiation, and market position.

According to Yashi Saxena, Analyst at Quadrant Knowledge Solutions, “Feedzai provides behavioral biometrics capabilities as a part of its Digital Trust solution, providing a holistic approach for an end-to-end risk management lifecycle and, enabling the identification of fraudulent activities such as impersonation and manipulation fraud.  The company’s key differentiated offerings include omnichannel case management, whitebox explanations, a data science studio, segment-of-one profiles, link analysis, and production-ready models.” “With its overall sophisticated Behavioral Biometrics offerings, ability to cater to a wide range of use cases, and robust strategy and roadmap, Feedzai continues to retain its position as a leader and has received strong ratings across the parameters of technology excellence and customer impact in the 2023 SPARK MatrixTM: Behavioral Biometrics” adds Yashi.

Pedro Barata, Chief Product Officer, at Feedzai added: “We are honored to be named 2023 technology leader by Quadrant Knowledge Solutions. This acknowledgement serves as strong evidence that Feedzai is at the forefront of innovation when it comes to protecting the world’s largest financial institutions and their customers

“To have Feedzai’s Digital Trust platform, which helps financial institutions fight malwares, impersonation, and network manipulation attacks – being recognised as a top performer  in the behavioral biometrics market is a fantastic achievement reflecting the collective dedication of the Feedzai team. We will continue to focus on developing future-ready technology  as we continue in our mission to combat financial crime.”

Quadrant Knowledge Solutions defines Behavioral Biometrics:

“A technology that passively and continuously monitors, analyzes, and authenticates users based on their behavioral, cognitive, and response attributes such as keystroke dynamics, device handling, touchscreen interaction, mouse movements, navigation pattern, form context and fluency, and data familiarity across the entire customer lifecycle. Behavioral Biometrics leverages advanced analytics and machine learning modules to continuously generate behavioral risk scores that help reduce false positives, minimize risk identification and remediation time, and drive frictionless customer experience.”

To combat the increasing frequency of fraud attacks, FIs are prioritizing the implementation of diverse security measures and strategies, while simultaneously strengthening their user authentication capabilities. By doing so, they aim to protect their customers and safeguard their assets from potential threats. A Behavioral Biometrics solution provides FIs in combating escalating risks by offering robust and scalable authentication capabilities. Through its risk-based approach, it enables organizations to elevate the customer experience. By analyzing user behavior across online channels, Behavioral Biometrics also reduces the administrative burden of managing user accounts.

Additional Resources:

 

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 Quadrant Knowledge Solutions:
Quadrant Knowledge Solutions is a global advisory and consulting firm focused on helping clients in achieving business transformation goals with Strategic Business and Growth advisory services. At Quadrant Knowledge Solutions, our vision is to become an integral part of our client’s business as a strategic knowledge partner. Our research and consulting deliverables are designed to provide comprehensive information and strategic insights for helping clients formulate growth strategies to survive and thrive in ever-changing business environments.
For more available research, please visit https://quadrant-solutions.com/market-research/.

Media Contacts:
Feedzai [email protected]

Quadrant Knowledge Solutions
Mr Ajinkya Ingle
Quadrant Knowledge Solutions
Regus Business Center

35 Village Road, Suite 100,
Middleton Massachusetts 01949
United States

Email: [email protected]
Phone: (+1) 978-605-1066

Visit Our Website: https://quadrant-solutions.com

Connect with us on LinkedIn- https://www.linkedin.com/company/quadrant-knowledge-solutions/


AI is the most effective method for tackling money laundering threats, according to AML professionals

August 15, 2023

Archives Press Releases

  • New Feedzai research of anti-money laundering (AML) professionals unveiled the most significant threats and solutions to AML processes
  • 46% state that increasingly sophisticated money laundering techniques, including generative AI technology, is one of the biggest threats their business faces
  • 53% note that the majority of money laundering activity they encounter is linked to cryptocurrencies
  • AI is the preferred solution to tackle financial crime, with 60% of respondents already seeing its positive effects in driving efficiencies in their AML processes and 51% viewing it as a critical element of future AML programs

San Mateo, Calif: AI is the most effective method for improving anti-money laundering (AML) processes and efficiencies according to AML professionals, research from Feedzai,  a leading provider of financial crime and risk management solutions

Feedzai’s The State of Global Anti Money Laundering Compliance Report 2023 surveyed compliance professionals to discover what the biggest threats and opportunities are in the AML ecosystem. It found that 46% of AML professionals are concerned about increasingly sophisticated money laundering techniques, including generative AI. The threat from generative AI and linked technology is now the top challenge for AML professionals, overtaking regulation, cryptocurrency and blockchain, the top threats cited in 2022.

Despite no longer occupying the top spot, crypto still remains front of mind for AML professionals. Over half (53%) of those surveyed said that the money laundering activities within their scope are predominantly linked to cryptocurrency transactions. Cryptocurrencies’ anonymous and decentralized nature is being exploited to conceal the origins of illicit funds, exacerbating the challenges in detection and monitoring.

As criminals utilize increasingly sophisticated technology, so too do those seeking to protect consumers. A third (33%) of AML professionals say that AI and machine learning are the most effective method for preventing money laundering. Of those already adopting AI, 60% said that the technology has already been effective in driving efficiencies in their organization’s AML processes.

Looking ahead, over half (51%) of respondents believe that an increased use of AI and machine learning is the future of AML and KYC (Know Your Customer) programmes. With the potential to instantly analyze huge data sets, AI is already helping investigators identify bad actors and diffuse threats. As a result of AI integration, we’ll see improved KYC processes, reduced false positives and also a reduced cost burden on compliance professionals.

Nick Parfitt, Principal AML SME at Feedzai said, “Fraudsters are capitalizing on fast-developing technologies to trick existing AML programmes, in many cases using generative AI to their advantage. Our latest report reiterates the demand from AML professionals for their organizations to adopt AI in combination with human insight as a defensive weapon to improve their compliance process and efficiencies. 

“Banks and financial institutions are sitting on a wealth of data that they can use to better protect their customers and business. By taking a RiskOps approach, they can put this data to good use by creating a 360-degree view of customer risk that addresses the entire lifecycle of financial crime and compliance, , – helping to stop criminals in their tracks before they can do any damage .”

 

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.

Media Contacts:
Feedzai [email protected]


Feedzai introduces Railgun: A next-generation fraud detection engine, featuring advanced AI to defend millions of people from surging financial crime

July 19, 2023

Archives Press Releases

  • Railgun delivers breakthroughs in accuracy, latency, and reliability, further enhancing Feedzai’s already industry-leading RiskOps Platform
  • Patented AI technology is the latest innovation from Feedzai, which has invested over $100M to develop the world’s most comprehensive suite of products to fight financial crime

San Mateo, Calif.: Today Feedzai, a leading provider of financial crime and risk management solutions, is introducing Railgun, its next-generation AI engine designed to target and intercept financial fraud before it can occur. In order to scale, today’s risk engines force financial institutions to limit the data they use to make risk decisions – typically by looking only at a limited history of data, and by using only a subset of relevant data inputs. Railgun removes these constraints, so financial institutions can now use a complete history of all relevant data – enabling them to assess the likelihood of fraudulent activity with unprecedented accuracy.

As sophisticated criminals embrace new techniques using generative AI, and as financial crime surges, new AI-based fraud-fighting technologies like Railgun will be critical to protect both consumers and financial institutions. Railgun’s breakthrough technology is the result of years of intensive research and development, and the product of multiple Feedzai patents in the area of streaming analytics.

Fraud detection engines typically rely on risk profiles that capture customer information, such as transaction history over specific periods, and assess the likelihood of a fraudulent payment based on a real-time comparison between current transactional activity and past typical behaviors. In the past, fraud detection suffered from a paucity of data to build these risk profiles, but now  our digital age ensures almost limitless information. However, risk engines have struggled to keep up with this change, because storing profiles for numerous customers, cards, and terminals requires massive amounts of low-latency memory space at scale. As a result, current systems simplify data inputs and limit historical context, diminishing fraud detection accuracy in order to achieve scalability. And because updating risk profiles is an offline process that is time consuming and expensive, these systems are also less agile, taking more time to adapt to rapidly evolving fraud patterns. Altogether, the result is a failure to prevent significant financial crime.

Railgun’s patented technology addresses the compromises inherent in today’s fraud detection systems, delivering:

  • Enhanced accuracy – Railgun enables real-time calculations based on data across much longer time windows, providing financial institutions with better observability and understanding of customer behaviors, resulting in more precise detection of suspicious activities.
  • Greater agility – Early production results show that Railgun improves the speed of risk strategy updates by 4x or more, enabling swifter responses to emerging fraud threats. New rules become effective almost immediately and risk recalculation no longer imposes a heavy burden on data science teams.
  • Scalability and lower latency – With Railgun financial institutions can confidently handle increasing transaction volumes without compromising accuracy or decision latency

Railgun is the latest innovation from Feedzai, which has invested over $100M to build its RiskOps platform, the world’s most comprehensive suite of solutions to combat financial crime. Feedzai invests heavily in fundamental research, and in the last three years has created nearly 100 patents and pending patents in the US and Europe, covering innovations in a wide variety of areas including applied AI and machine learning, fraud detection, streaming data processing and analytics, money laundering detection,  rules management, and AI explainability and fairness.

Pedro Barata, Chief Product Officer at Feedzai said, “As technology continues to evolve and tools such as AI become more readily accessible, fraud detection systems need to be able to keep pace and reliably combat criminal activity. Railgun is a significant weapon in the fight against financial crime, allowing banks and other financial institutions to accurately and cost-effectively turn the tide on the rising levels of fraud. With Railgun, banks no longer have to make assumptions or generalizations when it comes to risk profiling – helping protect millions of people worldwide.”

 

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.

Media Contacts:
Feedzai [email protected]


Novobanco partners with Feedzai to turbocharge customer engagement

June 26, 2023

Archives Press Releases

  • Partnership reiterates Novobanco’s commitment to delivering a market leading and seamless experience for the consumer
  • Novobanco will implement Feedzai’s market-leading Risk-Ops platform to optimise user experience while adding enhanced protection to its customers against financial crime

Lisbon, Portugal, 26th June 2023: Feedzai, the world’s first RiskOps platform for financial risk management, has partnered with Portuguese bank Novo Banco S.A. (Novobanco) to further enhance the bank’s customer experience, improve its digital journey and provide best in class fraud protection.

Novobanco is a domestic Portuguese universal bank that provides the full spectrum of financial products to both the corporate and retail segments. Novobanco has 1.5 million clients and €43.8bn of assets, being the 4th largest bank in its domestic market with a market share of 9.6%. Its customer-centricity culture is set to continuously enhance the experience of its clients, offering them an omnichannel experience, based on transparent, simple and safe products and services.

This ongoing programme of investment will see Novobanco partner with Feedzai to implement its market leading Digital Trust (DT) and Transaction Fraud for Banking (TFB) solutions. The two solutions work together to provide a deeper analysis of customer biometrics and behaviour, network, device and threat data in real-time to better identify legitimate customers and improve fraud blocking before it happens. Feedzai’s human-centered AI will also help Novobanco apply fair treatment across its customer portfolio by proactively addressing customer bias and improving their overall experience.

As a result, Novobanco will be able to optimise its solutions to all customers in order to improve overall trust, satisfaction and engagement levels.

Nuno Pires, Global Head of Sales at Feedzai said, “We’re proud that Novobanco has selected Feedzai as a trusted partner. The Digital Trust and Transaction Fraud for Banking solutions which are part of our RiskOps platform will empower Novobanco to further enhance its fantastic service whilst providing the highest level of financial security for its customers.”

Duarte Pupo Correia, EVP, Head of Digital Channels at Novo Banco said, “As a customer centric Bank, at Novobanco we are committed to continuously improving and providing the most intuitive, appealing and secure experience for all our customers. As we continue to invest in our digital ecosystem, implementing Feedzai’s best-in-class solutions will ensure we can raise the bar to a higher level.”

 

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 Novo Banco S.A.:
Novobanco is a domestic Portuguese universal bank that provides the full spectrum of financial products to both the corporate and retail segments. Novobanco has 1.5 million clients and €43.8bn of assets, being the 4th largest bank in its domestic market with a market share of 9.6%. Its customer-centricity culture is set to continuously enhance the experience of its clients, offering them an omnichannel experience, based on transparent, simple and safe products and services.

Media Contacts:
Feedzai [email protected]