Cognizant and FICO Partner to Help Banks Prevent Real-Time Payments Fraud

Rhea-AI Summary

Cognizant and FICO are partnering to launch a cloud-based real-time payment fraud prevention solution powered by FICO Falcon Fraud Manager. The collaboration aims to leverage AI and ML technology to protect banks and payment providers from fraud in the realm of instant digital payments. The offering is set to enhance fraud detection accuracy, minimize losses, and ensure a secure consumer experience.

Positive

• The collaboration between Cognizant and FICO will provide banks and payment providers with a cloud-based real-time payment fraud prevention solution.
• The solution will be powered by FICO Falcon Fraud Manager and will utilize AI and ML technology to combat fraud in the world of instant digital payments.
• The joint offering aims to enable the detection and blocking of fraudulent transactions with greater accuracy, reducing losses and enhancing consumer security.
• The proposed cloud-based solution can be implemented on a pay-per-use or licensing basis, eliminating upfront costs for banks of all sizes.
• The collaboration intends to protect customers from financial scams associated with new instant payment methods like FedNow Service.
• The solution will handle complex compliance requirements and integration tasks, allowing businesses to focus on core operations.

Negative

• None.

Cloud-based solution provides banks and payment providers with fraud protection powered by artificial intelligence and machine learning

TEANECK, N.J. and BOZEMAN, Mont., April 17, 2024 /PRNewswire/ -- Cognizant (NASDAQ: CTSH) announced today a planned collaboration with FICO, a leading analytics software company, to launch a cloud-based real-time payment fraud prevention solution powered by FICO^® Falcon^® Fraud Manager. The joint offering would leverage both firms' artificial intelligence (AI) and machine learning (ML) technology to help banks and other payment service providers in North America protect their customers from fraud in the growing world of instant digital payments.

While real-time payments have ushered in a new era of speed and convenience, they have also opened the door for scammers. The Cognizant and FICO offering would tackle this challenge by providing real-time fraud prevention with a seamless integration of the real-time payments rails. The offering is expected to enable the detection and blocking of fraudulent transactions with greater accuracy, minimizing losses, and creating a secure and seamless consumer experience.

"In today's fast-paced financial landscape, staying ahead of fraudsters is crucial. Our collaboration with Cognizant aims to provide stronger protection for real-time payments by combining the Cognizant communication layer and clearing gateway with FICO Falcon Fraud Manager, the leading payments fraud management solution," said Alexandre Graff, Global Head of Partners & Alliances at FICO. "By working together, we're striving to ensure a safe and secure future for real-time payments for multiple payment clearings such as FedNow, RTP, and SEPA Instant Credit Transfer."

For banks of all sizes, this proposed cloud-based solution can be implemented on a pay-per-use or licensing basis, eliminating upfront costs and simplifying the process. Additionally, the proposed solution will handle complex compliance requirements and integration tasks, allowing businesses to focus on their core operations.

"As new instant payments like FedNow Service gain popularity, banks and payment providers need to have guardrails in place to protect customers from the growing number of financial scams," said Nageswar Cherukupalli, Senior Vice President & Business Unit Head of Banking & Capital Markets and Strategic Initiatives of Cognizant. "Our collaboration with FICO intends to provide an AI- and ML-based layer of protection against sophisticated threats by detecting and blocking fraud with granular precision, reducing losses, and improving consumer experience."

About Cognizant
Cognizant (Nasdaq: CTSH) engineers modern businesses. We help our clients modernize technology, reimagine processes and transform experiences so they can stay ahead in our fast-changing world. Together, we're improving everyday life. See how at www.cognizant.com or @cognizant.

About FICO
FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, insurance, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 100 countries do everything from protecting 2.6 billion payment cards from fraud, to improving financial inclusion, to increasing supply chain resiliency. The FICO® Score, used by 90% of top US lenders, is the standard measure of consumer credit risk in the US and other countries, improving risk management, credit access and transparency. Learn more at www.fico.com. 

Contact: Katrina Cheung, katrina.cheung@cognizant.com 

 

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SOURCE Cognizant Technology Solutions Corporation

FAQ

What is the collaboration between Cognizant and FICO about?

Cognizant and FICO are partnering to launch a cloud-based real-time payment fraud prevention solution powered by FICO Falcon Fraud Manager.

How will the joint offering help banks and payment providers?

The offering aims to leverage AI and ML technology to protect banks and payment providers from fraud in the realm of instant digital payments.

What are the key benefits of the proposed solution?

The solution is expected to enhance fraud detection accuracy, minimize losses, and ensure a secure consumer experience.

How can banks implement the cloud-based solution?

The proposed solution can be implemented on a pay-per-use or licensing basis, eliminating upfront costs for banks of all sizes.

What challenges do banks and payment providers face with new instant payment methods?

Banks and payment providers need guardrails in place to protect customers from financial scams associated with new instant payment methods like FedNow Service.

What tasks will the solution handle for businesses?

The solution will handle complex compliance requirements and integration tasks, allowing businesses to focus on core operations.