The European Central Bank (ECB) has selected Portugal-based startup Feedzai to provide fraud detection and prevention for its digital euro.
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The selection of Feedzai is one of five tenders awarded by the ECB in connection with the planned launch of the digital euro.
The central bank digital currency (CBDC) project was launched in 2021 and the launch is believed to be close. The awarding of the tenders heralds the launch of the project’s second phase of preparation, according to the ECB.
At the heart of this second phase is the framework agreement struck with vendors for the risk and fraud management component, which has an estimated value between €79.1 and €273m.
Feedzai will work alongside subcontractor PwC to deliver a fraud detection and prevention service in line with the EU’s data protection, security and privacy standards, according to a statement.
Feedzai’s platform is designed to provide a fraud risk score for every transaction, enabling payment service providers to combine the data with its own before deciding whether or not to approve payments.
“Being selected as the first-ranked tenderer in the framework agreement to secure the digital euro is both an honor and a responsibility,” said Nuno Sebastiao, CEO and co-founder of Feedzai.
“With tens of billions of transactions expected across the eurozone, success depends on AI that can adapt as quickly as fraud evolves. Our role is to provide the intelligence that keeps even the most sophisticated fraud out, ensuring trust in every digital euro transaction from day one.”
Another vendor selected by the ECB is Germany-based Giesecke+Devrient, who will work alongside Nexi and Capgemini on the development and implementation of an offline solution to work alongisde the digital euro.