Unit21, a technology firm focused on risk and compliance, has introduced a new solutions aimed at assisting financial institutions and fintech companies in identifying and preventing scams. This development comes in response to increasing incidents of fraud, with consumers in the U.S. reporting more than $10 billion lost to scams in 2023, according to the Federal Trade Commission.

The new scams solution utilizes AI automation and integrates with existing fraud teams’ workflows, allowing for faster investigations and response times. It leverages IP insights and consortium signals to proactively detect scams before they impact consumer accounts.

Trisha Kothari, CEO of Unit21, emphasized the urgency of addressing scams, stating, “Data from our State of Fraud & AML report demonstrates the significant threat scams cause to financial institutions and the need for a more holistic view of consumer accounts to address these threats.”

Key features of the solution include real-time fraud detection, which stops scammers before they reach consumers, and tools that flag suspicious IP addresses, block known scammers, and apply predefined scam rules. The solution is designed to work alongside other measures to combat various forms of financial crime.

Kothari noted that criminals are exploiting gaps in regulatory guidelines regarding financial liability for scams, underscoring the importance of deploying advanced detection measures. She expressed hope that this new technology will assist in mitigating the resultant damage from scams.