Privacy-Preserving Fraud Detection for Financial Institutions
Reduce false positives by 30% and detect fraud in real-time through collaborative intelligence—without sharing customer data.
The Challenge
Financial institutions face a critical dilemma: they cannot share customer data to catch fraudsters, yet siloed systems allow criminals to cycle through banks undetected.
Data Privacy Constraints
Bank Secrecy Act and GDPR prevent sharing customer information, even to prevent fraud across institutions.
Repeat Offender Blindspot
Fraudsters exploit siloed systems, moving from institution to institution without detection.
Delayed Response
Traditional AML systems require days or weeks to identify patterns. Damage occurs before detection.
Operational Inefficiency
95% false positive rates consume compliance resources reviewing legitimate transactions.
Our Solution
Collaborative fraud detection using prediction markets on Canton Network—share intelligence, not customer data.
Pattern Sharing, Not Data Sharing
Share fraud patterns and behavioral signatures without exposing PII. Canton's selective disclosure ensures regulatory compliance.
Prediction Market Intelligence
Institutions stake predictions on transaction risk. Weighted scores aggregate network intelligence for accurate, real-time decisions.
Built-in Compliance
BSA Section 314(b) compliant framework with immutable audit trails and automated SAR filing capabilities.
Network Effects
Detection accuracy improves with each participating institution. Collective intelligence compounds over time.
How It Works
Four-step process from detection to network learning
Pattern Detection
Institution detects suspicious activity and submits anonymized pattern to network.
Market Formation
Prediction market opens. Participating institutions assess and stake on fraud probability.
Risk Aggregation
Weighted risk score calculated. Automated actions triggered based on configurable thresholds.
Continuous Learning
Outcomes verified. Accurate predictors rewarded. Network intelligence improves.
Regulatory Compliance
Designed for compliance from the ground up
See the Platform in Action
Schedule a demonstration to see how AML Prediction Network can reduce your false positive rate while improving detection accuracy.
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