Cognizant and FICO Forge Alliance to Combat Fraud in Real-Time Payments with Innovative Cloud-Based Solution

Cognizant and FICO join forces to introduce a cloud-based real-time payment fraud prevention solution, leveraging AI and ML technologies to enhance security for banks and payment service providers in North America. The collaborative initiative aims to detect and block fraudulent transactions with precision, offering a seamless and secure consumer experience amid the proliferation of instant digital payments.

18 April 2024 – Cognizant has unveiled plans for a strategic collaboration with FICO, a prominent analytics software company, aimed at introducing a cloud-based real-time payment fraud prevention solution powered by FICO® Falcon® Fraud Manager. This joint initiative harnesses the strengths of both organizations’ artificial intelligence (AI) and machine learning (ML) technologies to assist banks and payment service providers in North America in safeguarding customers against fraud amid the rise of instant digital payments.

While real-time payments have revolutionized the financial landscape with their speed and convenience, they have also presented opportunities for fraudsters. The forthcoming offering from Cognizant and FICO aims to address this challenge by delivering real-time fraud prevention seamlessly integrated with the real-time payments rails. By leveraging advanced AI and ML capabilities, the solution is poised to enhance the accuracy of detecting and blocking fraudulent transactions, thereby minimizing financial losses and ensuring a secure and frictionless consumer experience.

Alexandre Graff, Global Head of Partners & Alliances at FICO, highlighted the significance of the collaboration, emphasizing the critical need for robust fraud protection measures in today’s dynamic financial environment. The joint solution combines Cognizant’s communication layer and clearing gateway with FICO Falcon Fraud Manager, a renowned payments fraud management solution, to fortify real-time payment systems against evolving threats.

The proposed cloud-based solution offers flexibility for banks of all sizes, allowing implementation on a pay-per-use or licensing basis, thereby eliminating upfront costs and streamlining the deployment process. Moreover, the solution addresses complex compliance requirements and integration challenges, enabling organizations to concentrate on core business operations while ensuring comprehensive fraud protection.

Nageswar Cherukupalli, Senior Vice President & Business Unit Head of Banking & Capital Markets and Strategic Initiatives at Cognizant, emphasized the necessity for proactive measures to counter the growing menace of financial scams in the wake of burgeoning instant payment platforms like the FedNow Service. Through collaboration with FICO, Cognizant endeavors to provide a sophisticated layer of AI- and ML-based protection, enabling precise detection and mitigation of fraudulent activities, thus enhancing security and bolstering customer trust in real-time payment systems.

The joint efforts of Cognizant and FICO underscore a commitment to innovation and excellence in the realm of fraud prevention, ensuring a safer and more resilient future for real-time payments in the evolving digital landscape.

Author: Terry KS

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