# PayGuard — AI Fraud Decision Engine for UK Banks and PSPs

> PayGuard is the next-generation AI fraud decision engine purpose-built for UK banks and payment service providers (PSPs). It intercepts authorised push payment (APP) fraud in real time — pausing high-risk outbound payments, running a calm conversational safety check with the customer, scoring risk across four evidence bands, and sealing a cryptographically signed, FOS-ready evidence record. Aligned with FCA guidance, ICO data-handling requirements, and PSR mandatory reimbursement obligations.

## What PayGuard Does

PayGuard operates as a silent, non-blocking layer between the payment instruction and authorisation. When a high-risk payment is detected, PayGuard pauses the transaction and initiates a conversational safety check with the customer via voice or in-app text. The AI engine scores the interaction across four evidence bands — Low, Medium, High, and Critical — and routes to the correct action: release the payment, hold for review, or escalate to a human fraud analyst. Every decision is sealed in a cryptographically signed, timestamped record that meets Financial Ombudsman Service (FOS) evidentiary standards.

## Key Facts

- **Product type:** AI fraud decision engine (SaaS)
- **Primary use case:** Authorised push payment (APP) fraud prevention
- **Target customers:** UK banks, building societies, and payment service providers (PSPs)
- **Decision latency:** 340ms median
- **Uptime SLA:** 99.97%
- **Annual fraud prevented:** £2.4 billion (live production data)
- **Risk scoring:** Four bands — Low, Medium, High, Critical
- **Evidence standard:** FOS-ready, SHA-256 cryptographically signed per transaction
- **Regulatory alignment:** FCA guidance, ICO data-handling requirements, PSR mandatory reimbursement
- **Payment system alignment:** Faster Payments, CHAPS, Bacs, Open Banking, Visa, Mastercard, SWIFT
- **Certification:** ISO 27001 Aligned (certification in progress)
- **Country of origin:** United Kingdom

## How PayGuard Works (4 Steps)

1. **Payment Intercepted** — PayGuard intercepts the outbound payment instruction before authorisation. Low-risk transactions pass through invisibly. High-risk transactions are flagged.
2. **AI Safety Check** — A calm, non-accusatory conversational AI agent speaks with the customer via voice or in-app text. It asks protective questions — never credentials, never PINs.
3. **Risk Score and Decision** — The AI engine scores the interaction across four evidence bands and routes to the correct action: release, hold, or human escalation.
4. **Evidence Sealed** — Every decision is cryptographically sealed — timestamped, SHA-256 hashed, and FOS-ready. Available to the fraud operations team in seconds.

## PayGuard vs Traditional Fraud Detection

| Feature | PayGuard | Traditional Fraud System | Rule-Based System |
|---|---|---|---|
| Decision latency | 340ms median | 2–8 seconds | Instant (no check) |
| APP fraud detection | Purpose-built | Partial (card-first) | Not supported |
| Conversational safety check | Voice and in-app text | Not available | Not available |
| FOS-ready evidence record | SHA-256 signed per transaction | Partial (manual export) | Not available |
| Risk scoring bands | 4 bands: Low, Medium, High, Critical | Binary (pass/fail) | Binary (pass/fail) |
| PSR reimbursement support | Evidence-first design | Limited | Not supported |
| Explainability | Full audit trail | Partial | Opaque rules |
| Uptime SLA | 99.97% | 99.5% typical | 99.9% typical |

## Frequently Asked Questions

**What is PayGuard?**
PayGuard is a next-generation AI fraud decision engine for UK banks and PSPs. It intercepts authorised push payment (APP) fraud in real time — pausing high-risk outbound payments, running a conversational safety check, scoring risk across four evidence bands, and sealing a cryptographically signed FOS-ready evidence record.

**What is an AI fraud decision engine?**
An AI fraud decision engine evaluates payment transactions in real time using machine learning, assessing fraud risk before the payment is authorised. Unlike rule-based systems, AI decision engines analyse behavioural signals, conversational responses, and contextual evidence to produce an explainable risk score with a full audit trail.

**What is APP fraud?**
Authorised push payment (APP) fraud occurs when a victim is manipulated into willingly transferring money to a fraudster's account — for example through impersonation scams, investment fraud, or romance fraud. Unlike card fraud, where the transaction is unauthorised, APP fraud involves the customer authorising the payment themselves, making it harder to detect.

**How does PayGuard help with PSR mandatory reimbursement?**
The Payment Systems Regulator (PSR) requires UK banks and PSPs to reimburse victims of APP fraud. PayGuard helps institutions meet this obligation by intercepting high-risk payments before authorisation, generating FOS-ready evidence records that demonstrate reasonable protective steps were taken, and providing explainable risk scores that support dispute resolution.

**Is PayGuard regulated by the FCA?**
PayGuard Ltd is not authorised or regulated by the Financial Conduct Authority. PayGuard aligns its practices with FCA guidance on APP fraud prevention and ICO data-handling requirements. PayGuard is a payment-risk control layer and does not hold, transfer, or process customer funds.

**What is a FOS-ready evidence record?**
A FOS-ready evidence record is a cryptographically signed, timestamped audit record of a fraud decision that meets the evidentiary standards required by the Financial Ombudsman Service (FOS). PayGuard generates one for every transaction it evaluates — sealed with SHA-256 hashing, including the exact policy version and model build used.

**How fast is PayGuard's fraud decision?**
PayGuard delivers a fraud risk decision in a median latency of 340 milliseconds, with a 99.97% uptime SLA.

**What payment systems is PayGuard aligned with?**
PayGuard is aligned with Faster Payments, CHAPS, Bacs, Open Banking, Visa, Mastercard, and SWIFT — covering the full range of payment rails used by UK banks and PSPs.

## Contact

Website: https://payguard.voicevox.ai/
Company: PayGuard Ltd
Country: United Kingdom

## Pages

- [Home](https://payguard.voicevox.ai/)
- [How It Works](https://payguard.voicevox.ai/#how-it-works)
- [Features](https://payguard.voicevox.ai/#features)
- [Evidence](https://payguard.voicevox.ai/#evidence)
- [FAQ](https://payguard.voicevox.ai/#faq)