Cognizant partners with FICO to launch advanced fraud prevention solution for instant payments
Cognizant (NASDAQ: CTSH) has announced a strategic collaboration with FICO, a leading analytics software company, to introduce a cloud-based, real-time payment fraud prevention solution. This new service, which integrates the strengths of both companies in artificial intelligence (AI) and machine learning (ML), aims to safeguard banks and payment service providers in North America from the increasing threats of digital payment fraud.
The solution is built on FICO Falcon Fraud Manager, which provides a robust framework for detecting and mitigating payment fraud. Alexandre Graff, Global Head of Partners & Alliances at FICO, highlighted the benefits of the collaboration: “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.”
The collaboration between Cognizant and FICO addresses the vulnerabilities inherent in real-time digital transactions, such as those conducted via FedNow, RTP, and SEPA Instant Credit Transfer. Nageswar Cherukupalli, Senior Vice President & Business Unit Head of Banking & Capital Markets and Strategic Initiatives of Cognizant, explained, “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.”
Cognizant and FICO join forces to combat payment fraud with AI and ML technology, aiming to secure real-time transactions across North America
For banks of all sizes, this innovative solution can be deployed on a pay-per-use or licensing basis, removing the barrier of upfront costs and simplifying integration. This approach not only allows financial institutions to adopt advanced fraud prevention measures easily but also ensures compliance with evolving regulatory requirements.
The strategic partnership between Cognizant and FICO is a significant development in the fight against payment fraud. By leveraging advanced AI and ML technologies, the joint solution represents a forward-thinking approach to enhancing the security of instant payments. The integration of these technologies into existing payment infrastructures offers a promising avenue for reducing fraud-related losses while improving the overall consumer experience.
This collaborative effort marks a critical step forward in enhancing the security and integrity of real-time payment systems in North America. As digital transactions continue to grow, the need for sophisticated fraud detection and prevention solutions becomes increasingly vital for the safety and confidence of both consumers and financial institutions.