Account-to-account payment platform Form3 is partnering with anti-fraud company Feedzai to prevent the spread of authorised push payment (APP) fraud.
The two parties have joined forces to create a new solution that determines the risk of a payment made in real-time being potentially affected by APP fraud, leveraging intelligence to understand the behaviour of the payment sender and recipient.
Form3’s new APP fraud solution combines its A2A payment processing with Feedzai’s fraud and financial crime analytics, aiming for the highest-level of fraud detection, as APP fraud involves impersonation that manipulates the victim into sending the money.
Mike Walters, Form3 CEO, said: “The best way to tackle the rise of APP fraud is the use of collaborative intelligence and cutting edge technologies that allow the real-time identification of scams within the payment message.
“By bringing together Form3’s payment processing expertise, and Feedzai’s fraud and financial crime solutions, we can tackle APP fraud so that UK banks can make faster payments safer.
“Feedzai is the solution provider of choice for two of the top four financial institutions in the UK, so we are partnering with a market leader to combat APP fraud.”
APP fraud losses account for nearly £500m per annum, and Form3 believes the launch of the solution is timely, as it has been developed on the back of new regulation from the Payment Systems Regulator.
Pedro Barata, CPO at Feedzai, added: “There is increasing regulation in this space, and rightly so, we’ve got to do everything in our power to protect the end consumer from APP fraud.”
“With reimbursement becoming mandatory from October this year, it’s also in the interests of all banks to collectively ensure they prevent fraud and save huge payouts.
“By combining the expertise of Feedzai and Form3, we can drastically reduce the level of vulnerability in the payment process and give our customers the real-time intelligence that they need to stop fraudsters in their tracks.”
The service will go live in April, with a full rollout in the UK market expected in the summer of 2024 – ahead of the implementation of the new rules in October 2024.
