Startup-Spotlight
Fraudio is a fintech startup based in Amsterdam that focuses on helping companies in the payment ecosystem fight payment fraud and financial crime utilising artificial intelligence, machine learning, and multi dataset network effects. Fraudio’s mission is to connect merchants, payment service providers, merchant acquirers, card issuers and other players in the payments chain to a powerful centralized AI / smart brain that prevents, detects, and fights fraud in real-time, via fully-managed API - and without charges for professional services, creating unrivalled value. Fraudio is backed by ING, Payvision and Viva Wallet.
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Next Generation Fraud Detection Fraudio boasts a proprietary plug & protect centralised artificial intelligence brain. This brain does not require costly configuration, facilitates easy integration and continually learns from all transactions. This makes Fraudio a Generation 3 provider - implementing a disruptive leap from rules-based and machine learning-based solutions trained on individual customer’s data. Fraudio sets no barrier to entry: our accessible, democratic solution is on a pay-per-use basis only. Thanks to the patent-pending technology behind our smart brain, we can disrupt the payments fraud industry by moving away from a professional service approach and into a modern SaaS solution - to the benefit of consumers’ overall payment experience and our customers’ bottom-line results. Fraudio gives access to a top-performing, top quality, yet deceptively simple fraud detection and prevention API that, within real-time, returns advanced fraud-related AI insights about customers transactions. This allows every one of our customers to maintain conversion rates while reducing the direct and indirect cost of fraud - maximising revenue.
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The Problem: Fraud is rising, and fines for poor risk management are consequently growing. Financial institutions, especially in Europe, are under increasing scrutiny. This problem impacts all institutions touching payments, with more than 80% of organizations affected by payment fraud. Merchants lose up to 1.8% of revenue to fraud and spend up to 23% of operational budgets on managing it. Payment Service Providers (PSPs) are in a race to zero on transaction processing fees and subsequently need to offer customers ancillary services. In an increasingly competitive marketplace, and rapidly developing ecommerce marketplaces, all contribute to the rising tide of fraud. Licenses to operate can be lost if fraud ratios become too high. Acquiring Banks can be fined by the Card Schemes and regulators if they don’t control and actively mitigate the prevalence of fraud.
