B2B SaaS: Blockchain-enhanced intelligent fraud detection for the insurance sector

London, United Kingdom

Established in 2019


Teaser of the company

BlockFrauds helps insurers tackle insurance fraud more efficiently and effectively, helping cut $billions of costs that result in higher premiums which prevent the most vulnerable people getting their protection. Cutting edge technologies including AI and proprietary algorithms help detect fraud, and private blockchain is used to share the anonymised intelligence seamlessly and compliantly, like a Fraud Bureau, to spot fraudsters and multiple claims whilst the AI learns faster and more widely.

BlockFrauds tested and validated the following blockchain-based solution in the scope of BlockStart:


Insurance fraud is a massive issue: >$40bn per year in US Property & Casualty alone, passed on as higher premiums meaning billions of the most vulnerable people worldwide cannot afford the protections they provide whilst everyone gets worse customer service due to the fraud checks. 

BlockFrauds helps insurers detect fraud more efficiently and effectively, whether in automated systems or direct interactions.  It helps form an ecosystem of the insurer’s chosen data and tools, for maximum detection opportunities. It applies cutting-edge technologies including AI and proprietary algorithms to further detect fraud. The anonymised intelligence is then shared seamlessly and compliantly on a private blockchain, acting like a Fraud Bureau.  Frauds, fraudsters and multiple claims are better detected whilst the AI learns faster and more broadly from the wider intelligence, helping it keep pace with fraudster evolution. 

Insurance claims handlers get initial and updated Claim Credibility Scores and Claimant Reputational Scores to help prioritise their investigations. All insurers can benefit, including SMEs who don’t have the advantage of large proprietary datasets for cross-checks, whilst end customers get better value and service with the chance of lower premiums and more innovative products.   

Technical development during Prototype stage

During the development of BlockFrauds, the following technical developments have taken place:

  • The Corda sandpit has been built ready for pilot. Corda is the leading enterprise blockchain software, enabling the private permissioned access that ensures only trusted participants can contribute intelligence and train the model.

  • The solution has been designed to facilitate connectivity, with APIs easily created alongside the potential for related AI. Private nodes are scoped on AWS.

  • Two initial fraud detection solutions have been developed for the pilot. Digital Speech DNA detects any suspicious changes in speech, or speech characteristic of fraudsters. Frequency and modulation analysis helps voice recognition and any changes, whilst text mining such as looking for a particular phrases or/and words using NLP (Natural Language Processing) to help review characteristics, and sentiment analysis to capture specific view. The results are anonymised algorithms which are unique to each person and each communication, enabling cross-checks. Digital Image DNA converts images to algorithms to check multiple use, even if inverted or filtered or showing the same subject from a different angle.

  • The Claim Credibility Score algorithm has been created, using 2 deep learning AI and 2 shallow learning ML.

  • The pilot will involve connecting to Claim Technology’s platform to prove the functionality, start seeding the data and training the model. MVP development will then include scaling the Corda protocol, adding out-of-the-box connectivity and AI for additional popular links, training and enhancing the models, and determining any improved libraries and speech processing tools. Subsequent steps will expand the connectivity, further scale the protocol, and start introducing non-English European language capabilities. Nymiz will provide compliance support and scope future collaboration benefits.

Business development during Prototype stage

During the development of BlockFrauds, the following business developments have taken place:

  • BlockFrauds has received investment from CV Labs, part of the CV (Crypto Valley) VC family based in Zug, Switzerland, including participation in their incubator batch_03. This provides excellent support across a range of topics including blockchain, other technologies, markets, regulators, and practical advice, and is an excellent complement to its existing investor, Outlier Capital, and the BlockStart programme support.

  • BlockFrauds has also rebranded to reflect its focus on fraud detection, having previously partnered with a key industry player to take a different solution to MVP ready for multi-party trials in winter 2020/21.

  • During the prototype phase, extensive review of potential SME partners found many excellent candidates, eventually settling on two that were preferred for the pilot phase requirements. Claim Technology (UK) is a gateway platform providing simplified APIs, no-code design tools and an award-winning virtual agent app to help insurers more easily embed best-in-class insurtech solutions into their offering, both in the customer front end and behind-the-scenes processing. They are ideally placed to partner on the pilot and can provide marketing support and access to a wide range of their existing customers, including SMEs. Nymiz (Spain) are focused on compliance and can provide support in that area as well as exploring some identified collaboration benefits.

  • As well as the validation via Claim Technology, insurance sector contacts have also given strong support for the solution concept, with a plan to secure involvement in trials and data to seed and train the model at appropriate stages.

  • The updated go-to-market now assumes building on the pilot with Claim Technology for MVP launch on their platform, before extending the option for independent supply or routes such as other platforms or as a plug-in. The business model remains B2B SaaS. The pilot and initial trials are likely to be free, as the data is seeded, moving to pay-per-use as it becomes established, then more mature models such as monthly / annual licenses, value-sharing and services.

  • The business plan assumes team expansion as technical and financial milestones are met, including specific technical, fraud and customer-facing roles.

  • Marketing work will escalate during the pilot phase, following the rebrand. Soadad already spoke at CordaCon2021 on “Understanding the true value of DLT in insurance.” Events are being planned through CV, Outlier and Claim Technology as well as independently, and applications are being made to other accelerators and competitions.

Pilot stage implementation


In BlockStart, BlockFrauds implemented its “BlockFrauds” product in 2 SME adopters

Claim Technology

Install BlockFrauds onto Claim Technology platform and achieve suitable technical performance. Test images and/or speech and achieve target fraud detection performances.

BlockFrauds is integrated on Claim Technology’s platform.  Image functionality confirmed and met KPI targets. TRL7 achieved. Claim Technology platform is now capable of handling voice data.  Further integration testing is underway. Speech functions remain good off platform and meeting KPI targets. Discussions entered with third party for speech trials.


Discussion and opinion of BlockFrauds’ compliance with GDPR; Note of any relevant factors differing between UK and Spain; Discussion of possible Nymiz blockchain use-cases.

Opinion that the BlockFrauds appears compliant with GDPR (consistent with validation from independent UK lawyer), and wider discussion of common challenges. No significant differences to Spain. Possible Nymiz use-cases for blockchain discussed.

SME Adopters 

Meet the Team

Soadad Farhan
Soadad FarhanCo-founder and CTO
Ex-CTO and Head of Innovation at Hiscox, Lloyds Best Innovation Product winner 2016, >30 years experience in software engineering and development globally. Passionate about blockchain and driving business transformation through technology innovation
Roanna Doe
Roanna DoeCo-founder and CEO
Oxford-educated chartered accountant with >20 years FTSE100 experience in senior strategy, new business development, project and general management roles worldwide. Passionate about finding elegant, useful solutions and building motivated teams.

BlockFraud’s achievements

For more information, download the company’s portfolio

“BlockFrauds has had an amazing journey with BlockStart.  It has been invaluable to plug into such an experienced and truly helpful group of mentors, on everything from technology and regulation to marketing and investment. BlockStart helped us find great growth opportunities with SMEs to complement the big enterprise segment, and the profile helped secure a great new investor.  We even rebranded along the way!”

ROANNA DOE, Co-founder & CEO, BlockFrauds

Total funding received by Fardoe Software LTD under BlockStart: €20,000 (€1,000 for Ideation Kick-off, €15,000 for Prototype stage and €4,000 for Pilot stage)