Jack Henry Introduces a Real-Time Payment Fraud Feature

In an effort to combat the rising threat of fraud in payment transactions, Jack Henry (Nasdaq: JKHY) has introduced Payrailz® Fraud Monitor, a cloud-native, AI-based feature integrated into the Payrailz Digital Payments Platform, as stated in Finextra News. The new feature enables real-time fraud detection during the initiation of payment transactions.

Payrailz Fraud Monitor utilizes artificial intelligence (AI) and machine learning to detect and evaluate multiple fraud attributes and indicators, including both known and previously unknown fraud instances and patterns. It generates an aggregated and actionable score for each payment transaction as it is scheduled. Financial institutions can customize score ranges and thresholds based on their specific risk tolerance. The AI-enabled fraud engine continuously learns to identify evolving and emerging fraud patterns. By leveraging behavioral analytics, Fraud Monitor significantly reduces payment fraud, including account takeover (ATO), where fraudsters gain access to legitimate user credentials and swiftly attempt to transfer funds.

Tede Forman, President of Payment Solutions at Jack Henry, acknowledged the pervasive nature of fraud across payment channels and emphasized the need for a comprehensive approach to mitigate fraud attempts at various stages of payment transactions. He expressed enthusiasm about the launch of Fraud Monitor, which empowers clients with a sophisticated, AI-driven solution capable of scoring 100% of person-to-person (P2P), account-to-account (A2A), and bill payments in real-time. The feature’s ability to analyze transaction attributes, user profiles, and unusual behavioral patterns strikes a balance between promptly detecting and preventing fraudulent transactions while maintaining a seamless payment experience.

Adam Jones, Vice President of Digital Experience at Georgia’s Own Credit Union, highlighted the wide-ranging benefits of Fraud Monitor for their credit union. Apart from the crucial real-time fraud prevention capability, Fraud Monitor streamlines workflows by significantly reducing the number of suspicious transactions requiring manual review and automatically halting fraudulent activities. Jones praised the flexibility of Fraud Monitor, allowing them to respond to dynamic fraud schemes and patterns, as well as customize score thresholds and configurations to align with their risk preferences.

The introduction of Payrailz Fraud Monitor aligns with Jack Henry’s commitment to providing innovative solutions that assist banks and credit unions in combatting fraud across individual payment channels. As part of their technology modernization strategy, Jack Henry is also set to launch Jack Henry Financial Crimes Defender™, a state-of-the-art, cloud-native fraud detection platform designed for cross-channel protection. The platform is expected to be available in the summer of 2023.

As financial institutions face increasing challenges in maintaining security and trust in digital payments, the Payrailz Fraud Monitor offers an advanced and adaptable solution that equips them with the tools to safeguard their customers’ transactions in real-time.