A cloud-native, AI-based element of the Payrailz Digital Payments Platform, Payrailz Fraud Monitor, has been launched, according to fintech company Jack Henry. The feature actively and immediately detects fraud when payment transactions are initiated.
The feature, which is extremely customizable, is powered by the Payrailz Digital Payments Platform. Account-to-account (A2A) outbound external transfers, consumer and commercial bill payments, and person-to-person (P2P) payments are all supported. AI and machine learning are used by Payrailz Fraud Monitor to concurrently identify and evaluate a number of fraud traits and indicators. This comprises cases and patterns of deception that are both known and undiscovered. It generates an overall, usable score as each payment transaction is planned.
Based on their particular risk tolerance, financial institutions can set score ranges and other thresholds, and an AI-enabled fraud engine continuously learns to spot new and evolving fraud trends. Fraud Monitor, which is based on behavioral analytics, can significantly reduce payment fraud. This includes account takeover (ATO), which occurs when a fraudster obtains the login information of a legitimate user. As a result, the fraudster tries to immediately withdraw money from their accounts.
The use of AI to improve payments
Tede Forman, president of Payment Solutions at Jack Henry, stated that it is an unpleasant reality that fraud and fraud attempts affect every payment channel. We are aware that reducing payment fraud requires a multi-layered strategy that focuses on fraud attempts at various stages of a payment transaction.
“We’re thrilled to provide Fraud Monitor to our clients and give them access to a sophisticated, AI-driven functionality that instantly evaluates 100% of P2P, A2A, and bill payments. Utilizing user profiles, transaction data, and unusual behavior patterns allows for a unique balance between the ability to quickly identify and stop fraudulent transactions and a seamless payment experience.
Adam Jones, vice president of digital experience at Georgia’s Own Credit Union, stated that “Fraud Monitor delivers a wide range of benefits for our credit union.” Fraud Monitor improves workflow efficiency in addition to providing us with the vital service of assisting us in halting fraud in real-time by significantly lowering the amount of suspicious transactions that require our manual inspection and by automatically identifying fraudulent transactions.
“Fraud Monitor provided us with 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 function is a testament to Jack Henry’s dedication to developing cutting-edge technologies that aid financial institutions in reducing fraud. A cloud-native, cross-channel fraud detection software called Jack Henry Financial Crimes Defender will also be made accessible by Jack Henry as part of its technological modernization strategy in the summer of 2023.