A partnership between Featurespace and OrboGraph will assist banks and different monetary companies corporations defend themselves in opposition to examine fraud.
“OrboGraph’s experience in examine fraud detection completely enhances our experience and, collectively, we will supply a robust device that seamlessly integrates examine picture show performance and customary examine threat knowledge sources,” Featurespace President of Americas Carolyn Homberger mentioned.
Many customers, particularly youthful customers, have deserted paper checks. The truth is, some evaluation means that paper checks signify lower than 5% of transactions within the U.S. as of 2022 (in comparison with 17% for money and greater than 31% for credit score and cost playing cards). On the similar time, that comparatively modest quantity of paper examine writing nonetheless quantities to $27 trillion in worth. Additionally it is price noting that whereas paper checks have change into much less widespread in shopper transactions, paper checks are nonetheless utilized in practically half of all B2B funds in accordance with Paystand.
Which means there may be an ample alternative for fraudsters. The truth is, the Monetary Crimes Enforcement Community (FinCEN) has reported that examine fraud is changing into more and more prevalent and, as of 2023, represents greater than a 3rd of all fraud at depository establishments.
To this finish, the combination of Featurespace’s monetary crime prevention expertise with OrboGraph’s examine processing automation and fraud detection software program and companies will improve detection of fraudulent checks and cut back the variety of false positives for banks and monetary establishments within the U.Okay.
“Verify fraud is a rising and regarding space of economic crime – we all know banks and monetary establishments are experiencing an increase in stories and are in want of extra superior instruments that may sort out the problem,” OrboGraph CEO Barry Cohen mentioned. “Combining our experience with Featurespace will allow us to ship a extra sturdy and complete fraud detection answer, serving to monetary establishments to remain forward of more and more refined examine fraud schemes.”
Based in 2016 and headquartered in Cambridge, U.Okay., Featurespace made its Finovate debut at FinovateEurope 2016. The corporate returned to the Finovate stage later that yr to demo its expertise at FinovateFall in New York. Right this moment, the corporate processes greater than 50 billion occasions a yr, and protects 500 million clients in 180+ nations from fraud threat. Featurespace’s signature answer, its ARIC Threat Hub, leverages Adaptive Behavioral Analytics and Automated Deep Behavioral Networks to mannequin and predict particular person habits in real-time to boost fraud prevention and anti-money laundering efforts.
This spring, Featurespace cast a partnership with The Knoble, an alliance of economic companies professionals, regulators, and legislation enforcement that focuses on crimes resembling human trafficking and elder monetary exploitation. In Could, the corporate introduced the outcomes of a pilot undertaking with Pay.UK designed to defend customers from Licensed Push Fee (APP) fraud. Featurespace’s proof of idea detected greater than $178 million (£138 million) in fraud with a 5:1 false constructive ratio. Making use of its Generative AI answer TalllierLTM enabled Featurespace to spice up its fraud detection charges to 56%, figuring out a further $51 million (£40 million) in fraud.
“Fraud is the one largest crime within the U.Okay. It accounts for 40% of all crime and contributes to £2.3 billion in losses yearly,” Featurespace CEO Martina King mentioned. “However the UK is main the cost to sort out this subject and the game-changing pilot with Pay.UK is one which the world has been watching. It reveals the immense energy of collaboration and expertise, and the dimensions of constructive change that’s potential when the funds trade works collectively to sort out fraudulent exercise.”
Featurespace has raised greater than $108 million in funding in accordance with Crunchbase. The corporate’s buyers embrace Chrysalis Investments, MissionOG, and Perception Companions.
Photograph by Peter Spencer
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