Advancement and digitalization of the financial sector made the services more effective, but also upsurge criminality. Day by day, financial fraud rates climbed, amounting to $8.8 Billion in 2022 alone. Feedzai To attempt more realistic and complex scams, hackers are now taking assistance from generative AI. Between 2021 and 2023, losses from financial fraud increased by 30% as per the analysis of the United States Federal Commission.
What is Feedzai?
Mitigation of financial scams is essential and Feedzai is a high-tech warrior ready to beat the cyber attacks. High-tech scammers create chatbots, asking for personal financial details, making the scams more advanced. Feedzai is a risk operation system that uses AI and machine learning technology to offer retailers, payment providers, and banks fraud detection and prevention solutions.
The system was introduced in 2011 in Portugal by Nuno Sebastiao, Pedro Bizarro, and Paulo Marques. Feedzai is a market leader in the field and offers fraud detection and operational intelligence solutions to more than 190 countries. The key purpose of the platform is to mitigate financial crime and safeguard individuals from the risks associated with banking and e-commerce. Some of the major clients of Feedzai are Lloyds Banking Group, Citibank, and Standard Chartered. In addition, The UK, Canada, India, France, and Australia are top victims of financial scams.
This is all the basics of the Feedzai platform. Now let’s explore the contribution of the platform to fraud detection and prevention. The need for fraud detection and prevention in the digital landscape boomed the value of Feedzai, mainly in the financial sector. Authorized push payment fraud, romance scams, and business email compromise are some major types of fraud detected and mitigated by Feedzai.
How Does Feedzai Actually Work?
Understanding the behavior of the customer is the key to fighting fraud, and is capable enough to measure the data traits at a sub-event level, known as segment-of-one profiling. The segment simply develops a rich profile of consumers’ genuine activities and transactions, permitting the identification of scams or actions that are out of the box. In simple terms, summing the segment of one profiling and scam labels helps in designing strategies to protect vulnerable groups.
In addition, the platform also has the capability to identify customers who have higher chances of getting trapped in the scam before the scam actually initiates, and this becomes possible with consumer profiles and data. Data type, device, browsing pattern and comparison of the data assist in identifying anomalies. To drive greater insights, the platform uses both internal and external data sources along with the use of machine learning concepts to take insights into the customer journey. In addition, specialized alerts, routing to particular agents, and fraud typology are some practices of fraud detection and prevention.
Conclusion
Feedzai, a platform developed using AI and machine learning like advanced technologies, is all set to safeguard the financial world from high-tech scammers. The segment of one profiling and scam labels helps Feedzai in detecting fraud.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/08/28/feedzai-a-high-tech-warrior-ready-to-battle-financial-fraud/