Patent acknowledges Featurespace’s fraudbusting role in the US

It is not only the latest recognition of the company’s world-class innovation but also a key weapon in America’s battle against high levels of online fraud.

The patent is one of over 20 won across the company’s 15 year history and is for Featurespace’s Adaptive Behavioral Analytics technology which it invented to improve fraud detection and protect customers from real-time scams. The technology learns the behaviour of genuine customers through transactional data without requiring sensitive customer information.

Adaptive Behavioral Analytics is delivered through the company’s ARIC™ platform – a real-time, machine learning software system that monitors individual behaviours to catch new fraud attacks as they happen and outsmart risk.

The technology has been used by Featurespace and its partners across its customer base for years, protecting more than 500 million consumers in over 100 countries.

According to a recent report commissioned by Featurespace and conducted by PYMNTS Intelligence, almost 80 million US consumers have lost money to scams over the past five years, with three in 10 saying that they or their household have suffered losses after being targeted by scammers.

The research showed that fraud losses averaged $545 with nearly three in 10 people losing between $1,000 and $9,999 and over one in 10 more than $10,000.

The new patent triumph is another milestone for Featurespace over the last 12 months. Other notable successes include:-

• Featurespace has won business with 12 global financial providers throughout 2024 including European merchant payment processing solution, PAYSTRAX and cross-border payments company, Nium
• The completion of a major pilot with Pay.UK, the independent, not-for-profit operator of the UK’s national retail payments system, that identified £138.7 million in missed fraud from incumbent systems – higher than the average £112m detected during the pilot
• Featurespace has won major awards including Best Digital Solution Provider (Banking Tech Awards), one of UK’s top AI start-ups (The Times) and Tech Businesswoman of the Year (UK Tech Awards)

Dave Excell, co-founder at Featurespace, said: “Leveraging the power of AI is key to tackling fraud and financial crime. This patent grant is recognition of our continued track record of innovation and another key milestone in Featurespace’s mission to make the world a safer place to transact.

“Millions of US consumers have been hit with fraud over the last few years, and financial institutions must continue to enhance consumer protections to fight back against the rising threat.

“Adaptive Behavioral Analytics enables genuine customer activity to be learnt, providing a baseline from which changes are identified that are often a strong indicator of fraud.

“Tackling scams should be focused on prevention rather than cure: using technology such as Featurespace’s AI solution to identify and prevent scams in real-time offering increased security and consumer protections in real-time, identifying and stopping fraudulent transactions in milliseconds without impacting genuine customer transactions.”

One global payments processor says Featurespace’s solution minimised the risk of merchant fraud and resulted in a 50 per cent reduction in fraud losses and 81 per cent fewer genuine transactions declined.

Through its partnership with Featurespace, a top digital US bank was able to prevent over 75 per cent of potential fraud losses and saw an 85 per cent improvement in the amount of fraud caught.