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Feedzai Leverages AI to Launch New Tool that Stops Scams

Feedzai Leverages AI to Launch New Tool that Stops Scams
  • Feedzai unveiled ScamPrevent capabilities that will help banks protect their end customers from a variety of financial scams.
  • The new tools will be added to Feedzai’s RiskOps platform.
  • The Federal Trade Commission reports that between 2021 and 2023, losses from scams increased by 30% in the U.S.

Risk management and fraud prevention tool provider Feedzai is enhancing its RiskOps platform.

The Portugal-based company announced that its new ScamPrevent capabilities will be added to the RiskOps platform. The new tools aim to help banks protect their customers from a variety of financial scams.

“In this environment of faster payments and more sophisticated scams, banks should look at proactive strategies to protect their customers from financial crime,” said Feedzai CEO Nuno Sebastiao. “We believe that banks which embrace a comprehensive RiskOps approach will outperform in customer satisfaction and retention, while minimizing losses from financial crime.”

By improving its Feedzai AI engine, the company leverages its experience across multiple geographies and financial institutions to enable improved scam detection with fewer false positives.

ScamPrevent includes other customizable capabilities, as well. Firms can add bank-specific scam detection rules and thresholds, leverage features that help banks identify signals from pre-transaction patterns such as behavioral biometrics that indicate a customer could be a scam victim before they authorize the payment, add customizable scam classification, view performance metrics, and generate reports.

The Federal Trade Commission reports that between 2021 and 2023, losses from scams increased by 30% in the U.S. According to the Global Anti-Scam Alliance (GASA), this percentage may be an underestimate, as only 7% of scams losses are reported across the globe.

“The human impact of scams is particularly high as scammers tend to target vulnerable groups – the elderly, the economically disadvantaged, immigrant communities, and youth,” said Feedzai Chief Product Officer Pedro Barata. “As it becomes faster and easier to make payments, there is a growing need for new solutions that enable scams to be detected and intercepted before any money moves. With our new ScamProtect™ features, Feedzai delivers the industry’s most comprehensive approach to scam prevention.”

Feedzai was founded in 2011 and helps companies fight fraud in more than 190 countries. The company has raised more than $277 million, having pulled in its largest round of $200 million in 2021 that valued Feedzai at more than one billion dollars.


Photo by Tara Winstead