Feedzai secures $75M to boost AI-powered financial crime prevention

Feedzai has announced $75 million in additional funding to strengthen its financial crimes prevention offering.

In an announcement, the U.S. firm said the new funding round takes its valuation to more than $2 billion. It listed new institutional investors which participated in the fundraiser, and they include Iberis Capital, and Explorer Investments.

There was also renewed financial backing from old supporters Oxy Capital and Buenavista Equity Partners, the announcement mentions.

Feedzai said the new funding round comes in the wake of other milestones it has recorded lately which include the launch of some breakthrough products and services such as Feedzai Orchestration and Feedzai IQ; increased customer impact reflected in over $2 billion prevented from being lost to fraud by financial institutions; and its AI Trust framework.

In his remarks, the Co-founder and CEO of Feedzai, Nuno Sebastião, said: “Fraud isn’t just numbers on a balance sheet. It’s families losing their life savings and businesses losing customers. Protecting people and organizations from financial crime is why we built Feedzai. It’s our steadfast mission to keep commerce safe.”

“This new investment round enables us to continue driving innovation to defend against whatever comes next, so that every form of payment, even those yet to be imagined, can be trusted and adopted safely,” he added.

Feedzai says its comprehensive financial crime prevention solution helps customers who use a fragmented approach to tackle the problem.

Vasco Pereira Coutinho, CEO at Lince Capital, one of the institutional investors, praised “Feedzai’s ability to execute across multiple product lines while scaling globally.”

“Financial fraud is one of the defining risks of our time, and Feedzai combines proven technology with deep expertise to protect both banks and their customers. With its AI-driven, end-to-end approach to risk operations, Feedzai is uniquely positioned to transform the industry,” he commented.

The company says its system is used to protect over 70 billion in payments volume annually through card transactions and bill payments.

Feedzai to protect digital euro

Meanwhile, Feedzai is expected to provide its fraud detection and prevention software to protect the digital euro which the European Union is working to introduce.

This follows the signing of a framework agreement between the firm and the European Central Bank (ECB), according to an announcement. Feedzai is considered the first-ranked tenderer of the project.

In collaboration with its partner PwC, Feedzai plans to deliver “a state-of-the-art central fraud detection and prevention mechanism,” which ensures full compliance with EU security, privacy, and data protection standards.

The risk and fraud management component of the contract is valued at €79.1 million (US$92.8 million.)

Early this year, Feedzai launched an AI-powered fraud prevention product dubbed ScamAlert.

Article Topics

behavioral biometrics  |  biometrics  |  Feedzai  |  fraud prevention  |  funding