Cognizant has joined forces with analytics software company FICO to introduce a cloud-based real-time payment fraud prevention solution.

Powered by FICO Falcon Fraud Manager, the new joint offering will enable banks and other payment service providers in North America to safeguard their customers from fraud in real-time payments.

The solution will utilise both firms’ artificial intelligence (AI) and machine learning (ML) technology.

FICO partners and alliances global head Alexandre Graff said: “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.

“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.”

According to Cognizant, the new cloud-based offering will deliver real-time fraud prevention with a seamless integration of the real-time payments rails.

Besides, the solution is anticipated to enhance the ability to detect and prevent fraudulent transactions with higher accuracy. This will reduce losses as well as create a secure and smooth customer experience.

The proposed offering can be deployed on a pay-per-use or licensing basis for banks of all sizes. It will eliminate upfront costs and simplify the process, said Cognizant.

Furthermore, the solution is expected to manage complex compliance requirements and integration tasks to enable businesses to focus on their core operations.

Cognizant senior vice president and banking and capital markets and strategic initiatives business unit head Nageswar Cherukupalli said: “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.

“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.”