Reported by: Omar Faridi
Featurespace, which claims to be the leader in machine learning fraud and financial crime prevention technology, has secured funding from UK and US governments “to build a new type of artificial intelligence (AI) system to help banks and payments service providers (PSPs) detect financial crime – whilst protecting data privacy.”
The privacy enhancing technologies (PETs) Challenge Prize funding “enables Featurespace to develop privacy-preserving solutions that allow AI models to be trained on sensitive private data – important for revealing criminal activity – without organisations having to reveal, share, or combine their raw data.”
The company will apply federated deep learning incorporating privacy enhancing techniques “such as k-anonymity and local differential privacy to tackle financial crime.”
This PETs project – which is backed by the international payments organisation SWIFT – can be harnessed “to facilitate privacy-preserving financial information sharing and collaborative analytics, allowing anomalous payments to be identified without compromising the privacy of individuals.”
Featurespace now “has until 24 January to build its AI prototype.” If successful, the company’s solution will be “showcased at the second Summit for Democracy in the US, which President Biden plans to convene in the first half of 2023.”
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