Form3 partners with Feedzai to unveil APP fraud prevention tool

Form3 partners with Feedzai to unveil APP fraud prevention tool is profiled by BTW Media because public-source evidence links it to internet infrastructure, governance, operational dependencies, or market visibility.

• Form3 and Feedzai have collaborated to create an innovative APP fraud prevention solution, combining Form3’s payment processing capabilities with Feedzai’s machine learning expertise.
• The solution aims to address the rising issue of authorised push payment (APP) fraud, which causes significant financial losses annually and is expected to face new regulatory mandates from the Payment Systems Regulator starting October 2024.

Form3, an account-to-account platform, has partnered with Feedzai, a market leader in anti-fraud and financial crime software.

The partnership reorganises the fintech realm

In a groundbreaking move that promises to reshape the landscape of financial technology, two industry giants, Form3 and Feedzai, joined forces to combat the scourge of authorised push payment (APP) fraud on April 2024. This strategic partnership heralds a new era of collaboration in the FinTech sector, where cutting-edge technology meets advanced analytics to protect consumers and businesses from fraudulent activities in real time.

Form3, renowned for its state-of-the-art account-to-account payment processing capabilities, brings unparalleled expertise in streamlining and securing transactions. Meanwhile, Feedzai’s specialization in fraud and financial crime analytics, powered by machine learning, adds a layer of intelligence essential for detecting and preventing fraudulent schemes effectively.

Also read: Feedzai teams up with UK Finance again in fraud battle  

The APP will address the challenge of increasing fraud

The resulting APP Fraud Solution, a culmination of Form3’s robust payment processing framework and Feedzai’s analytics prowess, stands as a beacon of innovation. By employing fully supervised machine learning, this solution can identify risks associated with both the sender and recipient of payments, closing the intelligence gaps exploited by fraudsters with an impressive 95% detection rate at market-standard false positive rates.

The urgency for such a solution cannot be overstated, with nearly £500 million lost annually to APP fraud and impending regulatory mandates demanding banks reimburse victims starting October 2024. Mike Walters, CEO of Form3, underscores the importance of collaborative intelligence, emphasizing the need for cutting-edge technologies to combat the rise of APP fraud. Pedro Barata, CPO at Feedzai, echoes this sentiment, stressing the collective responsibility of banks to protect consumers and prevent substantial payouts.