What is Feedzai?
Feedzai is an AI-based risk management program that is used to detect financial scams at an institutional scale. In the current environment, the number of financial crimes is increasing with losses adding up to $8.8 billion in 2022.
Statistics from the Federal Trade Commission of the United States indicate that losses from financial fraud increased by 30% between 2021 and 2023. As per experts, scammers are now leveraring AI to setup intricate and realistically complex fraudulent schemes.
Cybersecurity reports have revealed that scammers tend to create chatbots that mimic human conversations. The bots are able to ask for personal financial details from the users or install malware on the devices of unsuspecting users. Other tactics involve creating phishing emails and mimicking human voices.
At the same time, fraudsters are able to steal money using instant bank payments. Therefore, risk management protocols such as Feedzai aid investors against financial crimes.
How Does Feedzai Work?
Feedzai is a risk operation or RiskOps platform. It makes use of machine learning and AI to safeguard retail investors, banks, and other payment services providers to avoid online scams. This platform has access to international sites and users.
In this manner, anyone can access its services to ensure security for e-commerce and banking operations. The platform was founded in Portugal in 2011.
At present, it has shifted HQ to California and operational in 190 nations. The platform was co-founded by Paulo Marques, Pedro Bizarro, and Nuno Sebastiao. This platform offers operational intelligence and scam detection services.
Feedzai contains an array of various AI-solutions to inspect and intercept specific types of scams and financial crimes. The platform is used by banking enterprises and private financial institutions such as Citibank, Lloyds Banking, and Standard Chartered.
Does Feedzai Use Machine Learning?
Feedzai is a RiskOps platform that utilizes fair and customer-centric model. It empowers financial firms to detect suspicious behavior, isolate scammers, and fight against fraudulent actors. At the same time, the platform also assists firms to store and manage identity and collaborate with various systems.
The main objective of Feedzai is to offer a better risk management plan for invested funds and financial aspects. The platform also standardizes fraud prevention and risk management to decipher the difficult-to-define and abstract types of risks.
The platform also utilizes machine learning to detect scamming patterns in services and transactions at a rapid pace. The protocol makes use of a human-readable semantic layer to refine fraud detection. At the same time, the learning model can leverage multiple data sources to make a highly detailed profile.
In this manner, the process of detecting fraud and scams becomes easier and distributed. This program can prevent financial risks such as money laundering. At the same time, companies also utilize the tool to compile data from various resources such as cross-channel, cross-product, and third-party providers.
In the same way, Feedzai is also an effective device to separate authentic transactions from fraudulent ones. It profiles the behavior of consumer interaction with banks and financial institutions.
In this manner, it becomes easier to identify consumers who are at risk of falling victim to scams. Feedzai can also perform fraud detection in real time for various payment processing options such as cards, wallets, swaps, withdrawals, and deposits.
Utility of Feedzai
- Feedzai uses machine learning to upgrade the traditional fraud detection programs.
- Feedzai prevents fake account creation and generation of compound rewards.
- Feedzai has the ability to detect a SIM swap scam that prevents various types of data breaches and scam attempts and grants better protection to the consumers.
Key Features of Feedzai
- Feedzai has introduced the following detailed and specified scam detection features:
- The platform has a comprehensive RiskOps framework that is based on a unit command center for data storage and management in real time.
- The central command center allows various institutions to share updated information regarding latest methods of frauds and scams based on the localized business requirements.
- Feedzai also incorporates behavioral-based biometrics and non-transactional statistics to identity potential scam targets. It assists users to alert consumers in advance regarding the latest scamming methods beforehand.
Conclusion
Feedzai has added many innovative features such as human-centric AI and inbound payment checks. At the same time, this program contains customization options that make for best adaptability feature for various retail and commercial users.
