Through this partnership, a cutting-edge authorised push payment (APP) fraud protection solution is introduced, creating a new standard in the FinTech industry.

This partnership's primary goal is to combat the growing problem of APP fraud, which deceives consumers into giving fraudsters authorized money. This partnership represents a breakthrough in the use of technology to secure financial transactions instantly, protecting both companies and customers.

Modern account-to-account payment processing features are what make Form3 so well-known. It offers a platform that makes payments easier and safer, guaranteeing that transactions are completed quickly and securely. Conversely, Feedzai specializes in financial crime and fraud analytics, providing solutions that efficiently use machine learning to identify and stop fraudulent activity.

Using fully supervised machine learning, Form3 and Feedzai have created the first APP Fraud Solution. With the help of Feedzai's analytics knowledge and Form3's strong payment processing infrastructure, this novel offering creates a model that can recognize hazards in both the sender and the recipient of payments. The technology closes the intelligence gaps that fraudsters exploit by detecting 95% of fraud attempts at market-standard false positive rates by understanding the behavior of both parties.

The approximate £500 million in yearly losses resulting from APP theft and the upcoming new laws from the Payment Systems Regulator, which require banks to reimburse victims of APP fraud beginning in October 2024, highlight the need for such a solution. This collaboration ensures that banks are better prepared to stop fraud and avoid large settlements by addressing a crucial issue facing the FinTech sector and adhering to regulatory requirements.

According to Form3 CEO Mike Walters, "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." Walters emphasized the significance of these two strategies in the fight against APP fraud. By combining Feedzai's financial crime and fraud technologies with Form3's payment processing know-how, we can combat APP fraud and enable UK banks to process payments more quickly and securely.

The partnership's importance was emphasized by Pedro Barata, CPO of Feedzai, who stated, "There is increasing regulation in this space, and rightfully so – we've got to do everything in our power to protect the end consumer from APP fraud." Since reimbursement will be required starting in October of this year, it is also in the best interests of all banks to work together to avoid fraud and reduce significant losses.

The service is scheduled to launch in April, and a complete UK market rollout is anticipated by the summer of 2024, in time for the October implementation of the new regulatory requirements.