Latest news with #Feedzai
Finextra
3 days ago
- Business
- Finextra
Feedzai launches AI-driven fraud detection tech powered by network intelligence
Feedzai, the global leader in AI-native financial crime prevention, today announced the launch of Feedzai IQ, a new family of solutions that enables network fraud intelligence without compromising customer privacy. 0
Business Wire
4 days ago
- Business
- Business Wire
Feedzai IQ Defends Banks Against AI-Driven Fraud With Privacy-Preserving Network Intelligence
NEW YORK & LISBON, Portugal--(BUSINESS WIRE)-- Feedzai, the global leader in AI-native financial crime prevention, today announced the launch of Feedzai IQ, a new family of solutions that enables network fraud intelligence without compromising customer privacy. Leveraging insights from hundreds of financial institutions across four continents and over $8 trillion in annual payment volume encompassing RTP, transfers, cards, and digital activity, among others, Feedzai IQ empowers financial institutions to make more intelligent, rapid, and precise risk assessments. 'We've always believed that the true power of AI is only unlocked through access to meaningful, high-quality data,' said Pedro Barata, Chief Product Officer at Feedzai. As fraudsters increasingly weaponize GenAI tools and stolen data — now driving over 50% of today's most sophisticated attacks — financial institutions remain hamstrung by siloed defenses and strict data-sharing limitations. Traditional data-sharing approaches raise significant concerns around privacy, security, and compliance, but Feedzai IQ eliminates the need for raw data exchange. Using federated learning, Feedzai IQ transforms anonymized, distributed data into real-time fraud intelligence, unlocking the power of collaborative defense without compromising sensitive customer information. Feedzai IQ delivers immediate value through community-driven AI models and network-based insights that enable banks to collaborate safely. Key features include: TrustScore – A real-time, AI-powered fraud risk score based on network-wide intelligence, delivering up to 4x more fraud detection with 50% fewer alerts. TrustSignals – Pre-calculated risk indicators that boost detection accuracy and improve payment acceptance, delivering a 27% increase in fraud detection and a 5% lift in acceptance rates. ' We've always believed that the true power of AI is only unlocked through access to meaningful, high-quality data,' said Pedro Barata, Chief Product Officer at Feedzai. ' While AI is surrounded by hype today, Feedzai has led the way in applying real AI to real problems—and now, with Feedzai IQ, we're combining our AI expertise with secure, network-wide intelligence. It's a breakthrough that takes fraud prevention to an entirely new level.' Customer Results Novobanco used TrustScore to uncover hidden fraud patterns — particularly scams and mule activity—achieving a 43% increase in fraud detection, a 41% higher value detection rate, and maintaining a low 0.66% alert rate. "Feedzai TrustScore helped us uncover and fight new fraud patterns that would either have gone undetected or been much harder to effectively block. We now possess a much broader and more powerful set of tools, analytic capabilities, and enhanced agility that strongly improve our effectiveness without increasing alert fatigue or negatively impacting the user experience," said Duarte Pupo Correia, Head of Direct Sales and Service Department at Novobanco. Jack Henry is equally excited about Feedzai IQ: 'Technology is enabling increasingly sophisticated fraud threats,' said Matt Riley, President of Complementary Solutions at Jack Henry. 'Innovations such as Feedzai IQ contribute significantly to the industry's ability to adapt to emerging threats and enhance operational effectiveness.' By unlocking secure, AI-powered collaboration across institutions, Feedzai IQ represents a paradigm shift in how the financial sector combats fraud. Financial institutions can now match fraudsters' speed and scale — while protecting customer trust and staying fully compliant with global privacy regulations.
Forbes
22-05-2025
- Business
- Forbes
How Financial Services Can Tackle AI-Powered Fraud
Online fraud is spiraling, costing businesses tens of millions each year, and financial institutions are waking up to the reality that fraud is no longer just a compliance issue or a customer service trade-off. It is a core business risk that demands a strategic response. Two new pieces of research, from fraud prevention companies Ravelin and Feedzai, paint a stark picture. According to Ravelin's Global Fraud Trends 2025 report, online merchants lose an average of $10.6 million annually to fraud. But the real story is not just about volume. It is about inaction. The report highlights internal tensions where fraud teams want to act decisively, but leadership hesitates out of fear of damaging customer experience. In parallel, Feedzai's research team has released a pioneering AI framework, OpenL2D, alongside the FiFAR dataset, offering the financial services industry new tools to evaluate human-AI collaboration in fraud decision-making. Published in Nature Scientific Data, the research provides critical insights into how fraud detection systems can better defer to human judgment when the stakes are high. These two contributions, one focused on frontline commercial losses, the other on long-term infrastructure and AI governance, together highlight the need for a smarter, more unified approach to fraud prevention in financial services and fintech. Ravelin's survey, which captured insights from over 1,400 fraud and payments professionals across 10 countries, found that 76 percent of businesses feel pressured to approve refunds even when they suspect abuse. This hesitation is most acute in sectors like travel and retail but the same tension is now spilling into financial services, where seamless digital experiences are seen as a competitive advantage and friction is feared like churn. 'Too many businesses are happy to dismiss fraud as a cost of doing business,' said Martin Sweeney, CEO of Ravelin. 'Downplaying fraud to protect the customer experience is a false dichotomy. With the right intelligence, firms can distinguish fraudsters from legitimate customers and still deliver great digital journeys.' Sweeney is especially critical of the idea that better fraud controls necessarily mean degraded user experience. 'It is one of the biggest internal misconceptions,' he added. 'Good fraud prevention actually helps good customers by removing unnecessary obstacles, while stopping bad actors in the background.' Martin Sweeney, CEO at Ravelin Andy Commons The speed and sophistication of fraud tactics are accelerating as cybercriminals begin to harness generative AI. Deepfake identities, synthetic customers, and increasingly convincing phishing attacks are now targeting banks and fintech platforms. Refund abuse, once a minor problem, has evolved into a systemic vulnerability. According to Jas Anand, Senior Fraud Executive at Feedzai, the arms race is well underway. 'Fraudsters increasingly harness generative AI to execute sophisticated scams,' said Anand. 'The future lies in a smarter blend of automation and focused human oversight. AI and ML should be the first line of defense, but human analysts are still essential to interpret ambiguous cases and ensure ethical responses.' Feedzai's OpenL2D framework and FiFAR dataset aim to address exactly this challenge. By simulating expert decision-making across 30,000 real-world fraud cases, the framework allows financial institutions to evaluate when and how AI systems should defer to human judgment, critical in high-stakes decisions such as loan approvals, payment blocks, and identity verification. The research shows that AI performance varies significantly depending on the capacity and diversity of available human experts. This has major implications for banks and fintechs looking to scale fraud operations while maintaining compliance and fairness. 'AI should identify patterns and anomalies at scale,' Anand said. 'But people must provide the context. This is not about replacing fraud teams. It's about making them more effective by giving them better tools and more time to focus on strategy.' Jas Anand, Senior Fraud Executive at Feedzai Feedzai Beyond the technology itself, both companies point to a more systemic issue inside many financial institutions: data fragmentation. Fraud prevention teams are often working in isolation from product, operations, and customer support, which limits their ability to see the full picture of a user's behavior. 'Unlocking the full potential of your data is one of the most overlooked changes a firm can make,' said Sweeney. 'Your data tells you everything you need to know, who to trust, when to issue a refund, whether a transaction is legitimate. But many organizations don't have the infrastructure to act on that insight.' Anand agrees, arguing that enhanced, real-time data integration is a force multiplier. 'Many institutions still focus on analyzing individual transactions rather than the broader behavioral context. This narrow lens results in higher false positives and missed threats.' When browsing history, payment patterns, device IDs, customer support tickets, and risk scores are analyzed together, the decision-making becomes more accurate and more responsive. This unified approach reduces both fraud losses and unnecessary friction for trusted users. Ultimately, both experts converge on one key point: fraud prevention must become a cross-functional, strategic capability, especially in financial services, where trust is currency and user experience drives retention. 'To shift internal mindsets, fraud needs to be treated as an investment in trust and long-term growth,' said Anand. 'Show ROI using internal case studies. Promote awareness beyond the risk team. Integrate fraud controls into product launches, marketing campaigns, and operational workflows.' Financial institutions should also consider contributing to collective intelligence networks, where anonymized threat signals are shared across the industry. Fraud rings rarely target a single company. Real-time collaboration can prevent multi-platform abuse and provide earlier warnings. 1. Reposition fraud as a value driver, not a cost center Link fraud prevention to brand trust, user retention, and product innovation 2. Break down data silos Unify e-commerce, support, risk, and product data for real-time, contextual decision-making 3. Adopt hybrid intelligence systems Use AI to scale pattern recognition, but reserve human analysts for nuance and escalation 4. Upgrade refund abuse detection Track behavioral patterns over time, flag high-risk users, and deploy smart verification methods 5. Invest in cross-functional education Make fraud KPIs visible across leadership. Align product, compliance, and customer experience teams 6. Leverage shared threat networks Join anonymized data-sharing initiatives to detect coordinated fraud earlier Fraud is no longer just a technical problem for the back office. It is a strategic maturity test for financial institutions, especially as they race to modernize infrastructure and deliver seamless digital experiences. As AI reshapes both the threat landscape and the toolkit available, the firms that succeed will be those that recognize fraud prevention as a cornerstone of customer trust and revenue protection, not a trade-off. For more like this on Forbes, check out AI's Growing Role In Financial Security And Fraud Prevention and Risk-Based Authentication: The Future Of Secure Digital Access.
Business Mayor
18-05-2025
- Business
- Business Mayor
M&S shoppers urged to follow 'simple rule' after cyber incident
M&S shoppers have been urged to be vigilant after it was revealed that customer details were stolen in a recent cyber attack on the retail chain. The cyber incident affected services for over a week, with shoppers unable to make orders online while in-store purchases were also affected. An update on the incident posted on the M&S website explained that 'some personal customer data has been taken', including personal details such as names and email addresses, and even some 'masked' payment card details used for online purchases. M&S advised customers to use strong and unique passwords for their email and other accounts, and to do any software updates on phones and devices to ensure you have the latest security updates in place. Robert Harris, senior director of Product Marketing at financial crime prevention group Feedzai, shared some tips for staying safe online in the event that criminals have managed to get some of your details. He said: 'Scammers often use bits of your real data—like your name or address—to make their story sound convincing. But here's a simple rule: never share personal information with someone who contacted you out of the blue. 'If the call, email, or message is legitimate, the organization should already have your details and won't ask you to confirm sensitive information. 'If in doubt, don't engage. Hang up and contact the company directly through an official phone number or website—not the one provided by the caller. It's always better to take an extra minute than to fall for a well-crafted scam.' If your suspicions are raised by a message you receive, Mr Harris says it's always good to double check if it's real, by looking up independent reviews or searching for the website on scam-reporting platforms such as He shared another telltale sign to look out for that a product offer is bogus, saying: 'If you're negotiating and the seller agrees to a price too easily, that's a red flag. 'Also, consider how you're paying—use a credit card whenever possible, as it offers more protection. And never feel pressured to make a decision on the spot. Pause, review, and only proceed if you're confident it's legitimate.' Fraser Mitchell, chief product officer at digital compliance group SmartSearch, also shared a warning about indications a message may be fake. He said: 'Always be wary of any unsolicited email or SMS. If sent a link check the email address of the sender for slight inconsistencies or spelling errors. 'By placing the cursor of your mouse over any link you will be able to see the address of the Web page you will be sent to. Again, check this for consistency and spelling errors and never click anything you are unsure of.' He said it's a good practice to ensure your password is 'complex and random', but to never include personal data such as your date or year of birth, or your name. Research from wealth firm Saltus found that one in three high net worth people have fallen victim to a cyber scam in the past six months, with 30% of victims targeted through social media and a fifth targeted by email. Mike Stimpson, partner at Saltus, said: 'Incidents like the M&S data breach give scammers a new opportunity to strike. We could well see a rise in phishing attempts, impersonation scams and fraudulent messages claiming to be from trusted brands in the short term. 'It is essential that individuals are aware of the methods scammers use and are vigilant against any emails, calls or other contact with people or brands they don't know. 'The default position should be that someone contacting them out of the blue is a scammer, and until steps are taken to verify the identity of the contact a cautious approach is critical, particularly in the coming weeks as the true impact of recent high profile data breaches at M&S and others becomes clear.' READ SOURCE
Finextra
06-05-2025
- Business
- Finextra
More than 50% of fraud involves the use of artificial intelligence
Feedzai, the global leader in AI-native financial crime prevention, today released its 2025 AI Trends in Fraud and Financial Crime Prevention report, uncovering how generative AI (GenAI) is used in financial fraud. 0 More than 50% of fraud involves the use of artificial intelligence. Generative AI has emerged as a powerful tool for criminals, enabling the creation of hyper-realistic deepfakes, synthetic identities, and AI-powered phishing scams. Financial institutions are quickly catching on, with nine in ten banks already using AI to detect fraud, and two-thirds have integrated AI within the past two years. The Feedzai latest report revealed that 90% of financial institutions are combating emerging fraud with AI-powered solutions to safeguard consumers and counter rising threats. While banks are adopting AI to combat fraud, they face significant roadblocks in implementation, especially ensuring the technology is ethical and transparent. In contrast, criminals using AI focus solely on exploiting the technology for illegal gain, without the constraints that banks face in adhering to strict ethical and regulatory frameworks. The Speed and Scale of Deception 92% of the financial institutions surveyed indicate that fraudsters use generative AI, and only 8% noted that they do not see GenAI being used by criminals. According to the report, 44% of financial professionals report that deepfakes are used in fraudulent schemes, and 56% of professionals cite social engineering, a set of manipulative tactics used by fraudsters to exploit human psychology and trick individuals into revealing sensitive information, as another significant tactic powered by AI. Fraudsters are also utilizing voice cloning techniques, with 60% of professionals recognizing this as a major concern, followed by 59% citing SMS and phishing scams powered by AI to deceive victims. AI-driven fraud tactics, including deepfakes, social engineering, and voice cloning, often result in account takeovers and scams, which, as unauthorized fraud, are generally reimbursable under most circumstances and harder to detect. While deepfakes alone don't provide direct access to accounts, they play a critical role in building trust during the entrapment stage of scams, where criminals deceive victims into believing they are dealing with legitimate parties. 'Today's scams don't come with typos and obvious red flags—they come with perfect grammar, realistic cloned voices, and videos of people who've never existed,' said Anusha Parisutham, Feedzai Senior Director of Product and AI. 'We're seeing scam techniques that feel genuinely human because they're being engineered by AI with that intention. But now, financial institutions also have to deploy advanced AI technologies to fight fire with fire to combat scams Top challenges: Data Management and Ethical Consideration Banks use AI to fight fraud, but they face more obstacles in ensuring it's ethical and transparent, while criminals exploit AI without such concerns. Despite AI's proven benefits, data management remains a significant challenge for financial institutions. 87% of banks cite data management as their biggest hurdle, with fragmented data sources and regulatory constraints slowing AI adoption, particularly among smaller institutions. As AI becomes essential in fraud prevention, ethical considerations are paramount. The report finds that 89% of banks prioritize explainability and transparency in their AI systems, demanding governance frameworks that ensure fairness, security, and accountability. Feedzai's TRUST Framework was developed to help financial institutions build AI systems that are transparent, unbiased, and secure. 'In some ways, AI is like a car. When automakers design a car, they don't just think about horsepower. They also consider safety features such as seatbelts, airbags, and anti-lock brakes that will keep drivers and passengers safe. The same is true for AI. Models that aren't designed with trust at the forefront can lead to significant problems for users,' said Pedro Bizarro, Ph.D., Co-Founder and Chief Science Officer, Feedzai. 'By ensuring that AI decisions are transparent, robust, unbiased, secure, and tested (TRUST), businesses will accelerate innovation and reinforce customer confidence.' AI-Powered Defense: Banks Leverage AI to Combat Fraud and Enhance Efficiency In the face of criminals using AI, banks also embrace it as a central defense mechanism. The report reveals that 90% of financial institutions use AI to expedite fraud investigations and detect new tactics in real-time. AI is used for scam detection (50%), transaction fraud (39%), and anti-money laundering (30%), positioning it as the critical tool in the battle against financial crime. Looking ahead, AI will not replace human roles but will continue to augment them. Forty-three percent of financial professionals report increased efficiency within fraud teams, allowing experts to focus on higher-value, complex fraud cases. As AI evolves, the future will see even more powerful AI-powered solutions, such as behavioral analytics and real-time anomaly detection, to stay ahead of emerging threats. By embracing specialized AI, banks are able to work harder and smarter in combating fraud-based threats, increasing both the reach and efficiency of their defenses. AI has become a critical tool in enabling financial institutions to detect fraud at scale, but human oversight remains essential to ensure its responsible use. While the road to full AI adoption remains challenging, the right technology and frameworks will continue to redefine fraud prevention and bolster security for consumers and institutions alike.
