Featurespace was granted a U.S. patent for its adaptive behavioral analytics technology.
This artificial intelligence-powered technology improves fraud detection and prevents real-time scams by learning the behavior of genuine customers through transactional data, without requiring sensitive information, the company said in a Wednesday (Dec. 11) press release.
Learning that behavior provides “a baseline from which changes are identified that are often a strong indicator of fraud,” Featurespace co-founder Dave Excell said in the release.
Adaptive behavioral analytics is delivered through the company’s ARIC Risk Hub, which monitors individual behaviors to catch fraud attacks as they happen, and it has been used by Featurespace and its partners for years, according to the release.
“Leveraging the power of AI is key to tackling fraud and financial crime,” Excell said in the release. “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.”
The patent for adaptive behavioral analytics joins more than 20 other patents granted or allowed to Featurespace over the company’s 15-year history, according to the release.
Financial scams have affected 3 in 10 U.S. consumers over the past five years, according to the PYMNTS Intelligence and Featurespace collaboration, “The Impact of Financial Scams on Consumers’ Finances and Banking Habits.”
The report also found that these scams damage consumer trust in financial institutions, with over half of victims considering switching FIs and 30% actually doing so.
Featurespace’s platform is “adaptable to the changes in fraud, so when new fraud emerges, there’s not a significant cost in terms of needing to go and remediate around that,” Excell told PYMNTS in an interview posted in November.
The company’s models are adaptive and “learn” in real time to ensure that risk scoring remains effective and reflects the changes in how consumers are transacting while banks launch new products and services — and while fraudsters look to exploit vulnerabilities, Excell told PYMNTS.
Visa said in September that it is acquiring Featurespace and expects the transaction to close during fiscal year 2025. When announcing the move, Visa said the two firms’ combined expertise will allow clients to manage fraud in real time and protect payments with AI-powered solutions.
The post Featurespace Receives US Patent for AI-Powered Fraud Detection Technology appeared first on PYMNTS.com.
