Linear Financial Technologies Releases Linear Defense, Introducing A Paradigm Shift in Fraud Detection Methods

Linear Defense is an AI-based fraud detection solution that enables financial institutions and other companies that onboard consumers and SMBs to be more cost efficient in underwriting fraud risk and to minimize lost business opportunities for new customer relationships.

Linear Financial Technologies, the market leader in digital account origination technology and insights for financial institutions, B2B vendors, and SMB service providers, announced the release of Linear Defense. This next-generation fraud detection platform was developed with DXFactor, a market leader in data science and digital transformation, and leverages some of the most advanced techniques in machine learning to help identify fraudulent applications and fraudulent accounts.

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As institutions continue shifting their legacy account opening processes to a more digital customer experience, bad actors are adapting their techniques to take advantage of this new business landscape. Financial institutions and FinTechs continue to search for more accurate and more efficient fraud identification approaches to catch bad actors and grow relationships with reputable customers.

Linear Defense^TM introduces a paradigm shift in the way institutions can approach fraud and financial crimes detection. Whereas most existing fraud solutions use an identity driven, rules-based methodology, Linear Defense gains its predictive power through unsupervised machine learning.  This means that the solution can be trained on virtually any product line and customer segment, using any combination of first party, third party and alternative data to calibrate its anomaly detection algorithms. Leveraging their combined expertise in advanced machine learning, Linear and DXFactor have created a simple, lightweight solution that clients consume through an API, seamlessly integrating into their current origination, customer onboarding or other operating systems.

“Fraud costs the global economy trillions annually, in terms of actual fraud and lost business opportunities from ‘false-positives’. Now more than ever, financial institutions and other companies delivering financial services products are concerned with the increasing sophistication of fraudsters and are searching for more effective tools to keep up,” said Linear CEO, Sam Graziano. “We are excited to roll out a product that is so simple to implement but also so powerful.”

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“Linear Defense is a one-of-a-kind, AI-based fraud platform that surpasses existing market solutions when it comes to detecting financial crimes and fraudulent activity. Using true alternative data and deep learning algorithms, the platform has the unique ability to auto-calibrate to a client’s specific channels and customer population,” said Sandip Nayak, Linear’s Chief Strategy and AI Officer. “The solution’s superior predictive power enables clients to reduce the manual touch points required to onboard new customers, creating a better experience for consumers and SMBs, and a more secure process that protects our clients against bad actors.”

“The new norm requires creative and advanced machine learning applications; we are super excited to partner with the market leader Linear to deliver this disruptive solution to detect fraud,” said DXFactor’s CEO Dharmesh Trivedi.

Linear simplifies the account opening experience for customers and streamlines the origination process for its clients. Launched through the merger of ODX & Fundation in February 2021, Linear serves an expansive and diverse set of clients, ranging from top U.S. banks such as Citizens Bank, PNC Bank, Fifth Third Bank, and Bank of the West, to non-bank lenders and SMB service providers.