Fiverity’s fraud defense platform uses AI to detect fraud, identify fake customer profiles and automatically notify regulators about breaches. In addition, the Fortanix-delivered confidential computing capabilities provide secure access to aggregated fraud-detection models that can analyze encrypted data from multiple banks.
Fighting fraud and protecting PII
The announcement comes as fraud costs have continually increased, rising 15% from 2020-2021 with every $1 of fraud costing US retail and commerce merchants $3.60, compared to $3.13 in 2019.
One of the key reasons for the high cost of fraud is that traditional fraud-protection defenses have limited effectiveness at securing the personally identifiable information (PII) that makes up customer’s identities.
The reality is that organizations need to secure all PII if they want to protect customer identities from being harvested by fraudsters.
“By employing Fortanix confidential computing, Fiverity focuses on the challenge of securing private information, while it is in use, during digital fraud detection. The Fiverity solution relies on Intel Software Guard Extensions (Intel SGX), to provide financial institutions with a new level of protection for sensitive customer data, and improved control over its access,” said CEO and founder of Fiverity, Greg Woolf.
By adding encryption to protect PII from unauthorized entities, and using AI to detect fraudulent transactions, FiVerity hopes to reduce the chance of identity theft going unnoticed, while automatically notifying regulators if any fraudsters do manage to sidestep the defenses.
“This combined platform enables financial institutions to analyze intelligence on fraud activity without exposing PII, keeping banks in compliance with security and privacy requirements and reducing their exposure to digital fraud,” Woolf said.
Fraud detection and prevention market
Fiverity is entering a fraud detection and prevention market that researchers value at $24.8 billion last year and expect will reach a valuation of $65.8 billion by 2026 as more institutions attempt to get to grips with identity theft and fraud that skyrocketed during the Covid-19 pandemic.
One of Fiverity’s main competitors is NICE which last year announced $515 million in revenue, and offers a solution called Actimize, which offers fraud authentication management, investigation and case management, and data intelligence capabilities.
Another competitor is LexisNexis Risk Solutions, a risk intelligence solution platform that provides financial services organizations with data analytics to make sense of the risks they’re exposed to, which DNB estimates generates $466.64 million in sales annually.
However, Woolf argues that Fiverity is a more comprehensive anti-fraud solution on the market.
“Fiverity offers a holistic approach that integrates with multiple solutions and data sets, and leverages machine learning to detect the latest fraud techniques. With the use of confidential computing, Fiverity enables financial institutions to share intelligence on fraud activity without exposing sensitive competitive data or personally identifiable information,” Woolf said.