Financial fraud continues to be a major, worldwide problem. The Federal Trade Commission reported US consumers lost £3.3 billion to fraud in 2020, with over a third being via imposter scams. In the UK, over £750 million was lost to fraud over 1H21, up 30% on the prior year. The real driver to this was authorised push payment (APP) fraud, where a customer is tricked into sending money to a fraudster, which saw a 71% increase to £355 million. APP fraud has risen partly due to the increase of “card not present” transactions, where the customer is physically not present at point of transaction, which rose substantially during COVID-19 induced lockdowns.
Featurespace has invented adaptive behavioural analytics and created the ARIC Risk Hub, which utilises real-time machine learning software to risk score events in more than 180 countries to prevent fraud and financial crime.
By analysing anomalies in individuals’ transactions, ARIC Risk Hub can automatically identify emerging fraud attacks and suspicious activity in real-time, without requiring constant retraining. Over 30 major global financial institutions use ARIC Risk, including four of the five largest banks in the UK and white labelled payment sector partners.
Featurespace has continued to drive innovation, introducing Automated Deep Behavioural Networks for the card and payments industry to provide a deeper layer of defence to protect consumers from scams, account takeover, card and payments fraud.