Feedzai introduces ScamAlert fraud detection tool

The tool is designed to counter increasingly sophisticated fraud tactics, particularly those that involve customer-initiated transaction approvals. By issuing real-time alerts and providing actionable guidance, ScamAlert aims to reduce financial losses and disrupt fraudulent schemes at their origin. 

According to the official press release, scam-related financial losses have reached over USD 1 trillion globally, with fraudsters increasingly using AI to refine their methods. In response, Feedzai has developed ScamAlert to improve fraud detection capabilities and support financial institutions in protecting their customers. 

The tool was introduced at the HumanX conference, an event focused on AI innovations and governance. Attendees were given the opportunity to interact with ScamAlert through an interactive demonstration, testing their ability to detect fraudulent schemes. 

Representatives from Feedzai noted that scams present a major challenge for both consumers and financial institutions, particularly as AI-driven fraud becomes more sophisticated. They emphasised that banks alone cannot fully mitigate scam risks, and that consumer awareness plays a crucial role. ScamAlert can work as both a fraud detection agent and an educational tool, reinforcing scam prevention strategies and ensuring consumers remain vigilant.

ScamAlert’s functionality 

Financial institutions can incorporate ScamAlert into their systems in various ways. It can be used as a self-service feature at the payment stage, allowing customers to verify the legitimacy of advertisements, invoices, and email communications before completing a transaction. Alternatively, it can be integrated into a bank’s risk assessment framework, contributing detailed scam-related insights to enhance fraud prevention strategies. 

From a consumer perspective, ScamAlert allows users to upload screenshots of potential scams, including text messages, emails, marketplace listings, and website URLs, through their mobile banking app or desktop platform. The tool then analyses these inputs using a multimodal AI model, detecting common fraud tactics such as purchase scams or impersonation fraud. In addition to issuing risk assessments, ScamAlert provides guidance on how users can avoid falling victim to scams. 

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