Feedzai has been named Best Transaction Fraud Monitoring and Decisioning Innovation in the Aite-Novarica Group 2022 Fraud Impact Innovation Awards. The award highlights how Feedzai empowers the bank’s data scientists to protect customers from scams and other fraud using a patented algorithm and providing a 360-degree entity view of payment risk. Due to its proficiency in mitigating fraud risk, Feedzai’s patent innovation is helping many financial institutions including Lloyds Banking Group, one of the largest retail banks in the world.
According to recent reports, financial crime has been on the rise since the COVID-19 pandemic began and large numbers of people have turned online for their banking activities. In the U.S., the impact of identity fraud last year was $52 billion in financial loss, affecting 42 million consumer victims (Javelin Research). In the U.K., authorised push payment scams reached £355 million in the first half of 2021, a year-on-year increase of 70 percent.
“Today’s fraud scams are increasingly hard to stop by traditional solutions because the transactions involve genuine customers on their actual devices, at their usual IP,” said Pedro Barata, Chief Product Officer Feedzai. “Lloyds Banking Group and Feedzai have pioneered an approach that utilises all available data across multiple channels to make fair fraud risk decisions in milliseconds, based on an individual’s specific details and activities, not one that is dependent on generalised customer groupings.”
The Feedzai RiskOps Platform has been proven to increase protection for banking customers against scams. The innovation and technical strengths of the solution contributed to the award win, as they provide customers with tangible benefits, including:
- Financial crime risk mitigation – Higher detection rates and lower false-positives help protect banks and their customers from the costly and distressing experience of fraud and scams.
- Enhanced user experience – reduces friction for good customers and lowers the number of unnecessary contacts with analysts and call centres.
- Operational efficiency – Keeps intervention rates low and ensures a less complex system through model-driven as well as rule-driven systems.
“Organised crime continues to attack financial services firms and consumers, always finding new and clever ways to circumvent their defences. Legacy approaches are less effective at keeping pace with, and adapting to, the escalating threat landscape,” says Chuck Subrt, Fraud & AML Practice Director at Aite-Novarica Group. “Fraud and AML executives recognise the imperative for more innovative tools that can drive meaningful intelligence, smarter decision-making, and better outcomes,” he explains.