Fintech company Jack Henry has launched a fraud prevention feature based on artificial intelligence in real-time.
The new tool is called Payrailz Fraud Monitor. This feature joins the fintech company’s Payrailz digital payments platform. The press release, which was published by the firm last Tuesday, June 20, contains information that the new tool supports transactions of several types and can detect the fact of fraudulent encroachment at the initial stage of the criminal initiative.
The president of payment solutions, Tede Forman, says that the company offers customers a complex mechanism for detecting illegal activity, which is controlled by artificial intelligence and evaluates the level of security of payments in P2P [person-to-person], A2A [account-to-account] and real-time bill payments. Separately, he noted that the functioning of the AI-based tool will not affect the speed of financial operations. According to him, Payrailz Fraud Monitor uses transaction attributes, and user profiles and captures atypical behaviors.
The press release claims that setting up the new feature is as simple as possible. The tool determines the degree of security of payments by comparing the transaction with the features of standard practices for performing such operations. Financial institutions can adjust the assessment range and thresholds based on their risk tolerance.
Adam Jones, vice president of digital technology at Georgia’s Own Credit Union, said the new tool provides many benefits. He noted that this feature allows you to stop fraudulent activity in real-time and increases the efficiency of the workflow. According to him, the use of the new tool in practice means a sharp reduction in the number of suspicious transactions, the decision on the security of which requires manual verification, and automatic suppression of the actions of criminals.
Industry research shows that last year in the United States, about 40% of consumers suffered as a result of theft or compromise of personal information. Also, 46% of American banks and financial institutions of other types have faced cases of fraud over the past two years.
Against the background of the growing threat of cybercrime, representatives of the financial sector are actively using advanced technologies to protect themselves and their clients.
Companies report an increase in the number of attempts to commit fraudulent transactions. For example, in May, Apple announced that in 2022 it had prevented criminal activity, the potential damage from which could amount to more than $2 billion.
The Federal Trade Commission (FTC) reported that in 2022, consumers in the United States lost $8.8 billion as a result of fraud, which is more than 30% higher than in 2021.
As we have reported earlier, FTC Says Online Marketplaces Need to Police Fake Goods.