- U.Okay.-based fraud and monetary crime prevention firm Featurespace secured funding to assist construct an AI-powered prototype to combat cash laundering and different monetary crimes.
- The funding comes from each the U.S. and U.Okay. governments, and is a part of an initiative supported by Innovate UK, the U.S. Nationwide Science Basis, and messaging community SWIFT.
- Featurespace made its Finovate debut at FinovateEurope in 2016.
Fraud and monetary crime prevention specialist Featurespace has secured funding from each the U.S. and U.Okay. governments to construct an AI-powered expertise to assist monetary companies establishments – together with banks and fee service suppliers (PSPs) – to detect and cease monetary crime. The aim particularly is to boost the flexibility of economic establishments to fight cross-border cash laundering, utility fraud, and APP fraud, specifically. The U.Okay.-based firm, headquartered in Cambridge, will construct a prototype, leveraging AI, that can be educated on “delicate personal funds knowledge.” Featurespace will apply federated deep studying to the info, utilizing privacy-enhancing methods similar to k-anonymity and native differential privateness. Organizations won’t must reveal, share, or mix their uncooked knowledge within the course of.
“U.Okay. and U.S. governments need banks to work collectively to cease fraud and cash laundering,” Featurespace Director of Innovation David Sutton stated. “This kind of privacy-preserving collaboration AI is a tough drawback that nobody has but solved. We’re assured we will meet this problem. We’re the one firm on this challenge that has deployed modern tech to combat worldwide monetary crime – and we’ve the banking prospects to show it.”
The funding comes courtesy of the privateness enhancing applied sciences (PETs) Problem Prize, an effort begun in July by Innovate UK and the U.S. Nationwide Science Basis. The initiative is also supported by bank-owned messaging community SWIFT. Featurespace has been given a deadline of January 24 to construct the prototype. Upon completion, if the challenge is profitable, will probably be showcased on the second Summit for Democracy to be convened within the U.S. within the first half of 2023.
“A profitable final result of this challenge is to earn cash laundering throughout borders and between banks far more troublesome,” Sutton stated. “Should you make it more durable to launder cash, you make prison actions much less worthwhile. It will profit companies, society, and shoppers.”
Based in 2008, Featurespace made its Finovate debut at FinovateEurope in 2016. Greater than 70 direct prospects and greater than 200,000 establishments starting from HSBC and Worldpay to fellow Finovate alums like TSYS and Marqeta, depend on Featurespace’s expertise to guard themselves towards fraud and monetary crime. An innovator within the area of fraud prevention, Featurespace has developed applied sciences like Adaptive Behavioral Analytics and Automated Deep Behavioral Networks to profile each genuine and fraudulent conduct to fight monetary crime in real-time. Each applied sciences are parts of Featurespace’s ARIC Threat Hub.
Final week, Featurespace introduced a partnership with Railsr to assist prospects of the embedded finance platform higher defend themselves from fraud and monetary crime. Per the settlement, Railsr’s fraud groups will have the ability to leverage card and fee fraud prevention and AML options by way of Featurespace’s ARIC Threat Hub.
“As embedded finance more and more turns into anticipated by shoppers, ensuring they’re protected against fraud and monetary crime should be anticipated in equal measure,” Featurespace Chief Industrial Officer Matt Mills stated. “Railsr (has) acknowledged this early and added a important layer of self-learning expertise to make sure their prospects get solely the very best expertise.”
Picture by Markus Spiske