August 2023

Featurespace, the world leader in fraud and financial crime prevention, has launched its latest solution, ARIC™ Scam Detect, to protect the financial services industry and their customers from the continued threat of scams. ARIC Scam Detect, built upon Featurespace’s first-class Adaptive Behavioral Analytics, will arm the industry with the defences required to continually adapt and outsmart scammers from all scam types, in real time.

Scams, also known as Authorized Push Payment (APP) scams, are the fastest growing fraud type globally – impacting individuals at a personal and emotional level, as well as business level. To give an idea of the size and scale of the problem:

  • In the U.K., losses during the first half of 2022 were £249.1 million.1
  • For the top 200 U.S. financial institutions (FIs), scams were a quarter of fraudulent transactions, with average losses of over $100 million in 2021.2
  • Over $248 million (AUD) has already been lost in 2023 alone in Australia across all scam types, according to Scamwatch.3
  • Scam victims in Singapore were cheated out of $660.7 million (SGD) during 2022, with young adults aged 20-39 being most likely to fall victim to scams, in particular, job scams.4

This is just a small snapshot of the global scam epidemic that we’re currently facing.

Regulators are also working to find more ways to protect consumers from the damage of scams. The U.K.’s Payment Systems Regulator (PSR) has recently formalised its rulings to make reimbursement to scam victims mandatory for banks, with both sending and receiving banks liable for splitting reimbursement costs. Forward-thinking financial institutions are acting now, with a large focus on the detection and prevention of scams, rather than refunding and reporting. Will other territories soon follow suit?

These forward-thinking institutions have been working with Featurespace to find a solution to protect their organizations and customers from losses, with Featurespace’s added experience in building enterprise-scale scam detection analytics. ARIC Scam Detect is Featurespace’s response.

ARIC Scam Detect provides out-of-the-box analytics resulting in scam protection from day one. Scoring both outbound and inbound payments in real time, ARIC Scam Detect has been proven to significantly increase the percentage of scam losses that are flagged as high risk at the point of payment. Results so far evidence a 4x increase in the value detected for purchase scams, which represent 57% of all reported APP fraud1, compared to incumbent systems. ARIC Scam Detect is quick and easy to integrate with no up-front implementation cost or historical data requirements, meaning time to value is extremely fast and comes at low effort.

With ARIC Scam Detect, financial services can benefit from:

  • Out-of-the-box behavioral models with real-time scam coverage from day one – no historic data required.
  • No need to rip and replace – ARIC Scam Detect can be layered on top of existing controls to provide enhanced protection or deployed as a standalone solution.
  • Inbound and outbound payment scoring for comprehensive protection.
  • Fully managed service for both analytics and infrastructure
  • Secure, SOC-2 compliant and encrypted platform.

“We have been working in partnership with the financial services industry to develop an innovative solution that will truly tackle the ever-growing threat of scams” said Pat Hinchin, CPO at Featurespace. “ARIC Scam Detect provides FIs with the protection they need for both their customers and their business. Especially as scammers become increasingly sophisticated in their tactics, with the use of Generative AI and machine learning, FIs need an adaptive solution that can protect from changing scam types in real time and monitor both inbound and outbound payments.”

ARIC Scam Detect is available now. Our experts are on hand to discuss how ARIC Scam Detect can support your scam challenges.

Find out more here.

1 UK Finance Annual Fraud Report 2023

2 The State of Fraud and Financial Crime in the US 2022

3 Scamwatch Scam Statistics 2023

4 Singapore Police Force


About Featurespace  

Featurespace is the world leader in enterprise grade technology that prevents fraud and financial crime. With a mission to make the world a safer place to transact, Featurespace helps banks and financial institutions protect customers, and reduce risk and business operating costs by providing industry-leading machine learning, financial crime prevention solutions.

Featurespace invented Adaptive Behavioral Analytics and Automated Deep Behavioral Networks and is the first to profile both genuine and fraudulent behavior to identify and block criminal activity in real time. Both are patent pending technologies that are central to Featurespace’s award winning ARIC™ Risk Hub.

Over 70 direct customers and 200,000 institutions have put their trust in Featurespace’s technology including HSBC, NatWest, TSYS, Worldpay, Marqeta, Contis, Danske Bank, Akbank, Edenred and Permanent TSB. Founded in 2008, and headquartered in Cambridge, UK Featurespace has a team of over 400, operating globally from seven locations.

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