Technology advancement is both a blessing and a curse for the financial sector. It has improved financial transactions’ efficiency. However, it has also paved the way for complex financial fraud schemes. Feedzai, a global fintech firm, has recognised this growing threat. In response, they have introduced a groundbreaking solution: Feedzai IQ.
Feedzai IQ is a collection of advanced solutions. They offer network fraud intelligence without infringing on customer privacy. The system harnesses insights from numerous financial institutions (FIs) across four continents. It processes over $8 trillion in annual transactions. This large data pool is crucial for identifying and combating AI-enabled fraud.
How Feedzai IQ Works
Feedzai IQ uses a unique privacy-preserving technology. This technology enables FIs to share intelligence about financial crime trends. At the same time, it respects customer data privacy. This feature is vital in an era where data breaches can cause severe damage and hefty fines.
In practice, Feedzai IQ creates a “privacy-preserving fingerprint” of each transaction. These fingerprints are anonymised and cannot be reverse-engineered to identify customers. Nevertheless, they still provide valuable information about the transaction’s risk profile.
Feedzai IQ combines these fingerprints with machine learning. This combination allows it to spot patterns indicative of fraud. If a suspicious transaction is detected, the FI is alerted. This alert enables them to act quickly to protect their customers and operations.
Feedzai’s CEO, Nuno Sebastiao, highlighted the importance of this technology. He stated, “Feedzai IQ is the first solution of its kind. It offers network-level intelligence with privacy at its core. It represents the future of financial crime prevention.”
To conclude, Feedzai IQ represents a significant leap forward in the war against AI-enabled financial crime. It allows FIs to share intelligence effectively and responsibly. Moreover, it provides a robust defence against fraudsters without compromising customer privacy. With this innovative solution, Feedzai continues to lead the fintech industry in combating financial crime.
