Feedzai Launches AI-Powered IQ for Privacy-Safe Fraud Detection

As fraud threats grow more advanced with the use of generative AI and stolen data, financial institutions face mounting pressure to detect fraud without compromising customer privacy. To address this, Feedzai, the global leader in AI-native financial crime prevention, has launched Feedzai IQ — a next-generation solution that enables real-time, network-driven fraud detection without sharing sensitive customer data.

Operating across four continents and leveraging insights from over $8 trillion in annual payments, Feedzai IQ offers a breakthrough in collaborative intelligence. It uses federated learning to turn distributed, anonymized data into actionable fraud detection, transforming how banks fight crime together.

The Growing Challenge: Sophisticated Fraud in a Fragmented Landscape

Rise of GenAI-Driven Fraud

• Over 50% of today’s sophisticated fraud attacks are powered by generative AI and stolen personal data.
• Attackers are moving faster, adapting to bank defenses in real time.

Limitations of Current Fraud Detection

• Data privacy regulations prevent effective data sharing between financial institutions.
• Siloed fraud defenses leave banks vulnerable and reactive rather than proactive.

Feedzai IQ: The Solution to Collaborative, Privacy-First Defense

Feedzai IQ breaks through traditional barriers by offering a federated learning framework that enables banks to collaborate on fraud detection without raw data exchange.

Core Capabilities

1. Federated Learning Framework

• Allows distributed machine learning across anonymized datasets.
• Enables collective fraud intelligence without violating privacy or compliance regulations.

2. Network-Wide Intelligence

• Draws on global insights from hundreds of institutions across real-time payments, transfers, cards, and digital banking.
• Delivers fraud signals informed by a vast and constantly updated network.

Features Driving Performance

1. TrustScore

• A real-time, AI-powered fraud score powered by collaborative insights.
• Achieves:
  • 4x improvement in fraud detection
  • 50% reduction in false positives/alerts

2. TrustSignals

• Pre-calculated, context-aware risk indicators.
• Enables:
  • 27% increase in fraud detection
  • 5% increase in legitimate transaction acceptance

Industry Impact: A Secure, Scalable Shift in Fraud Prevention

Benefits to Financial Institutions

• Faster detection and fewer false positives, improving customer experience.
• No compromise on privacy—customer identities remain protected.
• Scalable collaboration, unlocking the power of the entire financial ecosystem.

Future-Proofing Against AI-Driven Attacks

• As criminals deploy more advanced AI tools, Feedzai IQ helps institutions evolve beyond static, siloed fraud systems.
• Promotes adaptive learning models that continuously evolve through shared intelligence.

Leadership Perspectives

Pedro Barata, Chief Product Officer, Feedzai:

“While AI is surrounded by hype today, Feedzai has led the way in applying real AI to real problems. With Feedzai IQ, we’ve combined AI expertise with secure, network-wide intelligence—delivering a fraud prevention breakthrough.”

Feedzai IQ marks a paradigm shift in financial crime prevention, proving that powerful AI and privacy can coexist. As fraud becomes more complex and technology-driven, Feedzai’s federated intelligence model positions banks to proactively defend themselves and their customers—together.

For financial institutions, Feedzai IQ is not just an evolution in fraud detection—it’s a strategic imperative for the AI age.

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