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Jack Henry & Associates has launched PayrailzFraud Monitor, a real-time fraud-monitoring technology for payments.
The cloud-native solution, which Jack Henry describes as an enhancement to its Payrailz platform, uses artificial intelligence, machine learning, and behavioral analytics to detect payments fraud as the fraud is occurring, with a scope including peer-to-peer and account-to-account transactions, as well as consumer and business bill payments. Jack Henry acquired the Payrailz platform in 2022 for an undisclosed sum.
The use of artificial intelligence enables the platform to continuously learn about evolving and emerging fraud patterns to detect potential fraud. Fraud Monitor weighs such attributes as known and previously unknown fraud instances and patterns to create an aggregate score for each payment transaction.
Financial institutions can configure score ranges and other thresholds based on their risk tolerance, according to Jack Henry. In addition to detecting payment fraud, Fraud Monitor can also detect account takeover, which occurs when cybercriminals take possession of an authentic user’s credentials and attempts to quickly move funds out of their accounts.
“It’s an unfortunate reality that every payment channel is being impacted by fraud and fraud attempts,” Tede Forman, president of payment solutions for Jack Henry says in a statement. “And we know that mitigating payments fraud takes a multi-layered approach that targets fraud attempts at the different stages of a payment transaction. 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.”
In addition to fraud detection, Fraud Monitor helps improve workflows by reducing the number of suspicious transactions that need manual review, according to Adam Jones, vice president of digital experience at Georgia’s Own Credit Union.
“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,” Jones says in a statement.
Later this summer, Jack Henry plans to begin rolling Financial Crimes Defender, a cross-channel fraud detection platform. Separate from Fraud Monitor. A cloud-native platform, Financial Crimes Defender, detects fraud and other suspicious account activity that can hurt consumer’s financial health, as well as financial crimes, such as money laundering.
