Fintech, Jack Henry has announced the launch of Payrailz Fraud Monitor, a cloud-native, AI-based feature of the Payrailz Digital Payments Platform. When initiating payment transactions, the feature actively detects fraud in real-time.
Powered by the Payrailz Digital Payments Platform, the feature is highly customisable. It supports person-to-person (P2P) payments, consumer and business bill payments, and account-to-account (A2A) outbound external transfers.
Payrailz Fraud Monitor leverages AI and machine learning to simultaneously detect and weigh multiple fraud attributes and indicators. This includes known and previously unknown fraud instances and patterns. As each payment transaction is scheduled, it generates an aggregated, actionable score.
Financial institutions can configure score ranges and other thresholds based on their unique risk tolerance, and the AI-enabled fraud engine continuously learns to detect evolving and emerging fraud patterns. Based on behavioural analytics, Fraud Monitor can substantially mitigate payment fraud. This includes account takeover (ATO) when a fraudster takes possession of an authentic user’s credentials. Consequently, the fraudster attempts to quickly move funds out of their accounts.
Utilising AI to enhance payments
“It’s an unfortunate reality that every payment channel is being impacted by fraud and fraud attempts,” said Tede Forman, president of Payment Solutions at Jack Henry. “And we know that mitigating payments fraud takes a multi-layered approach that targets fraud attempts at the different stages of a payment transaction.
“We’re excited to offer Fraud Monitor to our clients and empower them with a sophisticated, AI-driven feature that scores 100 per cent of P2P, A2A, and bill payments in real-time. The ability to leverage transaction attributes, user profiles, and atypical behaviour patterns uniquely balances the ability to immediately detect and prevent fraudulent transactions with a frictionless payments experience.”
“Fraud Monitor delivers a wide range of benefits for our credit union,” said Adam Jones, vice president of digital experience at Georgia’s Own Credit Union. “In addition to the critical benefit of helping us stop fraud in real-time, Fraud Monitor helps with workflow efficiencies by drastically reducing the number of suspicious transactions that need our manual review and automatically stopping fraudulent transactions.
“Fraud Monitor provided us the flexibility we need to respond to dynamic fraud schemes and patterns as well as the ability to tailor score thresholds and other configurations that support our risk preferences.”
The Payrailz Fraud Monitor feature supports Jack Henry’s commitment to providing innovative solutions that help banks and credit unions reduce fraud. As part of its technology modernisation strategy, Jack Henry also is releasing Jack Henry Financial Crimes Defender, a cloud-native, and cross-channel fraud detection platform that will be generally available in summer 2023.