Galileo Deploys Anti-Fraud Tools for Banks and FinTechs

Galileo has introduced a pair of anti-fraud tools for banks, FinTechs and businesses.

The new tools, announced Tuesday (Sept. 10), are designed to offer real-time fraud detection and risk management services amid a surge in digital transactions and evolving cyber threats.

First up is Galileo Instant Verification Engine (GIVE), which is designed to provide real-time verification of external bank accounts and ownership. Able to be used on its own or as an integration with Galileo’s payment risk platform, GIVE lets businesses stop fraud by quickly verifying account existence, status, and ownership before transactions are processed.

“GIVE is further enhanced by its integration with the Galileo Payment Risk Platform, which uses a sophisticated Transaction Decision Rules Engine,” the company said.

“This engine applies customizable models, rules and profiles to each transaction, allowing for real-time, automated fraud prevention decisions tailored to the specific needs and risk appetite of each business.”

Galileo has also introduced Transaction Risk GScore, a machine-learning-based offering that assesses the risk of card transactions in real time, adding “a layer of fraud signals” to the payment risk platform while letting customers “determine the risk appetite based on the multiple model responses.”

Meanwhile, PYMNTS spoke recently with Max Spivakovsky, senior director of strategy and operations, global payments risk management and onboarding at Galileo, about the tightropes walked by banks as they try to balance delivering digital services and payments choices while also preventing fraud.

That balancing act requires financial institutions (FIs) to use both proactive and reactive approaches, as well as technological tools, as they defend themselves while providing a personalized, convenient customer experience, Spivakovsky said.

“The legacy solutions just don’t work anymore,” he told PYMNTS. “Leveraging a single tool used to be the ‘paramount’ strategy of fraud mitigation years ago, but now it’s just not applicable … the FIs must think about fighting fraud with a holistic perspective.”

The holistic perspective can pay dividends while safeguarding the FI from financial losses and reputational risk, he added.

“The client experience drives the engagement, and utilization of [banking] apps and programs,” Spivakovsky said.

He also noted that the financial services sector is shifting away from an era when banks took charge of everything and kept all data and processes on site, toward relying on FinTechs and other providers to provide real-time fraud prevention and identify fraud and scam patterns before they hurt banks and their customers.