- Anti-fraud platform Feedzai has teamed up with account-to-account (A2A) platform Form3.
- The partnership will see Feedzai strengthen Form3’s new Authorized Push Payment Fraud (APP) fraud prevention solution.
- Founded in 2011, Feedzai made its Finovate debut in 2014 at FinovateEurope.
Anti-fraud and financial crime software company feedjai It will strengthen account-to-account (A2A) platform Form3’s new authorized push payment fraud (APP fraud) prevention solution. Built with supervised machine learning, Form3’s new product leverages collaborative intelligence to determine payment risk in real time by understanding the behavior of both senders and receivers.
This technology acknowledges that when it comes to preventing fraud, especially APP fraud, understanding the recipient of a payment is just as important as understanding the sender. This is because APP scams involve scammers tricking legitimate account holders into sending payments to an illegitimate account owned or accessed by the scammer.
Feedzai CPO Pedro Barata explained that both regulation and new fraud threats are driving innovation in the payment fraud space. Barata specifically mentioned new regulations coming later this year mandating compensation for victims of APP fraud. He emphasized that this would provide additional incentive for banks to embrace new anti-fraud technologies. “By combining the expertise of Feedzai and Form3, we can significantly reduce the level of vulnerability in the payment process and provide our customers with the real-time information they need to thwart fraudsters.”
Innovation in fraud prevention is being driven by positive developments in fintech, such as real-time payments. As more and more fraudsters see real-time payments as a potential way to target consumers, businesses must respond with technology and anti-fraud solutions that close security gaps and counter emerging threats such as APP fraud.
“The best way to combat the rise in APP fraud is to use collaborative intelligence and cutting-edge technology to identify fraud within payment messages in real time,” said Form3 CEO Mike Walters.
Since its debut at FinovateEurope in 2014, Feedzai, a Finovate graduate, now counts 80% of the world’s Fortune 500 companies as customers. Founded in 2011 and headquartered in San Mateo, California, Feedzai now has more than 600 employees, has 10 offices around the world, and supports operations in 190 countries. The risk management tool provider has raised more than $277 million in funding, according to Crunchbase. Nuno Sebastiao is the CEO.
Photo credit: Vlad Cheşan