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European Central Bank Partners with Feedzai for Digital Euro Fraud Prevention

On October 2, 2025, the European Central Bank (ECB) announced a significant framework agreement with Feedzai, the premier RiskOps platform focused on combating financial crime. This collaboration aims to establish a robust fraud detection and prevention system specifically designed for the future digital euro, which is anticipated as a major innovation in Europe's financial landscape.

As the second-largest economy globally, the eurozone encompasses around 440 million citizens and boasts a GDP exceeding $17 trillion. The digital euro represents a landmark advancement since the euro's initial launch in 1999. With a proposed framework agreement valued between €79.1 million and €237.3 million, this initiative highlights the importance of security in a rapidly evolving digital economy.

Feedzai, in partnership with its subcontractor PwC, will develop a state-of-the-art fraud detection mechanism that complies fully with EU security, privacy, and data protection regulations. Their joint efforts will facilitate the design, integration, and development of the Digital Euro Service Platform (DESP), ensuring that the digital euro operates securely and effectively for all eurozone users.

The Digital Euro: A Tool for the Modern Era

The ECB emphasizes that the digital euro is engineered to serve as a public good, echoing the reliability of cash while being tailored for contemporary needs. The objectives behind the digital euro include:

• - Preserving the central bank's role: As the economy shifts increasingly towards digital platforms, the ECB aims to maintain the central bank's relevance in monetary transactions.
• - Reducing reliance on non-EU payment systems: By fostering an indigenous digital currency, Europe seeks to gain independence from external payment solutions and enhance its strategic autonomy.
• - Promoting financial inclusion: The digital euro is designed to be accessible and beneficial for all citizens, ensuring they are included in the evolving financial landscape.

Privacy remains a cornerstone of the digital euro's framework. The ECB has assured that digital transactions will incorporate strong privacy measures, including pseudonymization and encryption, facilitating cash-like offline payments for minor transactions.

Feedzai's Role in Safeguarding Transactions

Feedzai has been appointed as the top bid in the framework agreement, tasked with implementing the central fraud detection solution for the digital euro. The platform will enhance payment service providers’ (PSP) risk management capabilities by providing a centralized view of transaction security.

For every payment—whether it involves individuals (peer-to-peer) or businesses (peer-to-merchant)—Feedzai’s system will deliver a fraud risk score. This score will be utilized by PSPs, who can then decide to approve or decline a transaction based on their existing controls coupled with Feedzai’s insights.

Nuno Sebastião, CEO and Co-Founder of Feedzai, remarked, “Being selected as the first-ranked tenderer in this framework is both an honor and an extensive responsibility. The eurozone is poised for tens of billions of transactions, and our AI-driven solutions must rapidly adapt to ever-evolving fraud tactics. Our mission is to provide the intelligence necessary to ensure trust throughout every digital euro transaction.”

Liviu Chirita from PwC accentuated the importance of this project, stating, “This initiative is one of the most significant digital infrastructure undertakings in Europe, establishing a foundation for trust in the digital era. Our collaboration with Feedzai and the ECB is not just about combating fraud—it’s also about empowering Europe to stride with integrity, resilience, and technological independence.”

Broader Implications for Europe and Beyond

The ECB envisions that the digital euro will substantially enhance Europe’s resilience, inclusion, and technological autonomy. While primarily targeted at serving citizens and businesses within the euro area, other central banks worldwide are closely monitoring this innovative project as part of ongoing discussions regarding the future of global currency systems.

About Feedzai

Feedzai is recognized as the first comprehensive platform for preventing financial crime, harnessing AI-native solutions to shield transactions from fraud and financial misconduct. Esteemed financial institutions depend on Feedzai to streamline their risk and compliance protocols, protecting trillions of dollars in transactions while enhancing user experience and maintaining privacy.

For more information, contact: [email protected]