The European Central Bank is tapping fraud mitigation service provider Feedzai to secure its upcoming payment channel, the digital euro. 

The Lisbon-based Feedzai’s proprietary AI model will help the ECB flag money laundering attempts and stop fraudulent transactions, according to an Oct. 2 release.

“Each transaction receives a fraud risk score indicating the likelihood of fraudulent activity,” Andy Renshaw, senior vice president of product management at Feedzai, told FinAi News. “Banks participating in the digital euro ecosystem can then use these scores in combination with their own anti-fraud systems to decide whether to block, review or approve the transaction.” 

The tech 

Feedzai’s AI model uses transactional data available within digital euro payments along with additional signals, such as behavioral or device-level metadata, to flag suspicious activity, Renshaw said.  

“The ECB has made strict data privacy a cornerstone of the digital euro, and Feedzai’s role and technology are fully aligned with that principle,” he said. 

The two platforms will be connected via APIs, Renshaw said, adding that . 

“We use federated learning, rapid model updates and dynamic feature engineering, all built on our RiskOps framework,” Renshaw said. “This allows us to spot new fraud patterns quickly and strengthen defenses as criminal tactics evolve.” 

Feedzai’s solutions are payments agnostic, Renshaw said.  

“Whether it’s fiat, stablecoins or other digital assets, our system can assess fraud risk whenever there’s a sender, a receiver, an amount and transaction context,” he said. 

Feedzai hits $2B valuation 

Feedzai raised $75 million in a series E round backed by Lince Capital, Iberis Capital and Explorer Investments among others on Oct. 2, taking its valuation to $2 billion. 

“The majority [of the money] will fuel R&D, particularly in AI innovation, model development and scaling our fraud and financial crime prevention capabilities globally,” Renshaw said. “It gives us the resources to bring new AI techniques into production faster and to scale them globally.” 

Feedzai has raised $352 million since its founding in 2009, according to Crunchbase. 

Standard Chartered, Fiserv, ANZ and CaixaBank are among Feedzai’s clients. 

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