Jack Henry Introduces AI-Powered Fraud Detection to Enhance Digital Payments Platform
Jack Henry, a leading financial technology company, has unveiled a new real-time fraud mitigation feature powered by artificial intelligence (AI), according to PYMNTS. Known as Payrailz Fraud Monitor, this innovative addition to the Payrailz Digital Payments Platform is designed to support various payment types and identify fraudulent activities as payment transactions are initiated, according to a press release issued on June 20.
Tede Forman, President of Payment Solutions at Jack Henry, expressed enthusiasm about the launch, stating, «We’re excited to offer Fraud Monitor to our clients and empower them with a sophisticated, AI-driven feature that scores 100% of P2P, A2A, and bill payments in real time. The ability to leverage transaction attributes, user profiles, and atypical behavior patterns uniquely balances the ability to immediately detect and prevent fraudulent transactions with a frictionless payments experience.»
The Payrailz Fraud Monitor is highly customizable, enabling financial institutions to configure score ranges and thresholds based on their own risk tolerance. By generating an actionable score derived from multiple fraud attributes and indicators, this feature assists in reducing the number of suspicious transactions requiring manual review while automatically halting fraudulent transactions. Adam Jones, Vice President of Digital Experience at Georgia’s Own Credit Union, lauded the benefits, stating, «Fraud Monitor delivers a wide range of benefits for our credit union… helping us stop fraud in real time… drastically reducing the number of suspicious transactions that need our manual review and automatically stopping fraudulent transactions.»
According to recent research conducted by PYMNTS, approximately 40% of consumers experienced stolen or compromised personal information in the past year, while 46% of financial institutions reported incidents of fraud within the last two years.
In response to the escalating threat of digital fraud, financial institutions are increasingly leveraging cutting-edge technologies to safeguard their customers and protect themselves. The May/June edition of the «Digital-First Banking Tracker®,» a collaboration between PYMNTS and NCR, titled «Stopping Bank Fraud With Cybersecurity Solutions,» highlighted this trend.
Instances of fraudulent transactions have been on the rise, with notable companies like Apple reporting a record-breaking $2 billion worth of prevented fraud in app store transactions last year. The Federal Trade Commission (FTC) also revealed that consumer losses due to fraud reached $8.8 billion in 2022, a significant increase of over 30% compared to 2021.