Fraud metrics do not always show the full picture
Some fraud prevention vendors highlight high detection rates without explaining the operational trade-offs involved. In many cases, aggressive fraud detection settings can generate false positive rates between 85% and 95%, overwhelming AML and fraud operations teams and increasing staff turnover.
Some vendors also focus heavily on the number of blocked fraud attempts without measuring the wider business impact of false declines, false positives or customer friction. In practice, high fraud detection rates mean little if fraud losses, operational costs and customer disruption continue to increase.
What banks should expect from fraud prevention providers
Banks should ask vendors for verifiable data sources and transparent benchmarking methodologies. Fraud prevention providers should also present clear operational metrics, including fraud detection rates, false positive rates, false decline impacts and long-term total cost of ownership.
Banks should also expect customer references, clear explanations of how AI and human oversight are used, and independent validation wherever possible. Tieto Banktech delivers fraud prevention solutions designed specifically for European banking environments, payment infrastructure and fraud patterns rather than adapted from US-focused systems.
For more than 25 years, Tieto Banktech has focused on helping European banks respond to challenges such as SEPA Instant payments, PSD2, APP fraud and cross-border financial crime. The platform is designed for Europe’s real-time payment infrastructure and regulatory environment, supporting more than 130 banks across the continent. Unlike siloed fraud prevention approaches, Tieto Banktech’s multi-tenant platform supports anonymised intelligence sharing across institutions to improve fraud detection accuracy and response times.
Some vendors position software-only SaaS solutions as lower-cost and faster-to-implement alternatives. However, many SaaS-only models still require banks to maintain large internal AML, sanctions and fraud operations teams. These platforms also often require significant internal tuning and operational support to align with a bank’s risk profile and processes. Tieto Banktech focuses on explainable AI, real-time European payment behaviour and operational expertise tailored specifically to European fraud risks and compliance requirements.
Why banks choose Tieto Banktech for fraud prevention
“In 2024 we monitored more than four billion transactions and prevented over €400 million of fraud, 75% stopped before it caused any loss to end customers.”
Tieto Banktech combines shared fraud intelligence, AI-driven monitoring and continuous threat analysis to strengthen fraud detection and prevention. The platform continuously analyses fraud patterns, mule account activity and emerging scam techniques across the banking network. Anonymised intelligence is shared across the platform in near real time to improve fraud prevention across all participating institutions. This shared intelligence model helps banks respond faster to emerging fraud threats. In 2024, Tieto Banktech monitored more than four billion transactions and prevented over EUR 400 million in fraud losses, with 75% stopped before end customers experienced financial loss.
Tieto Banktech provides end-to-end fraud operations support through its Fraud Defence Centre, including 24/7 monitoring, AI-supported investigations and rapid response services. Banks can choose modular support services or fully outsource fraud prevention and AML operations to Tieto Banktech. Based on operational data gathered over more than 30 years, full outsourcing can reduce fraud operations costs by 25–60%. The shared operating model also helps distribute infrastructure, compliance and development costs across a network of more than 130 European banks.
