Jack Henry Introduces Financial Crimes Defender for Fraud Prevention

Published 6 months ago
  Jack Henry

Jack Henry™ (Nasdaq: JKHY) is revolutionizing fraud prevention with the initial launch of Jack Henry Financial Crimes Defender. This innovative solution is a cloud-native fraud and anti-money laundering (AML) tool, emphasizing real-time capabilities.

Empowering Regional and Community Financial Institutions

The Financial Crimes Defender enables regional and community financial institutions to proactively tackle financial crimes across various channels. The platform, part of Jack Henry’s tech modernization strategy, is built on the public cloud, which allows real-time data, precise reporting, open integrations, and fast, agile operations.

New York’s Carver Federal Savings Bank is among the first institutions to employ this solution. According to Patrick Brennan, VP of Information Technology at the bank, the new tool facilitates a secure banking experience for customers and helps the bank efficiently combat financial crimes and reduce risks.

Real-Time Fraud Detection and Prevention

The Financial Crimes Defender detects and prevents fraud involving checks, deposits, transfers, ACH transactions, and instant payments in real time. It allows financial institutions to halt transactions before they leave the institution or appear in clients’ accounts. Additionally, the platform’s open architecture enables seamless integration of third-party data, enhancing fraud management across all relationships.

This AI-powered tool combines fraud and AML solutions, assisting institutions of all sizes in making rapid, informed risk decisions. It also minimizes false positives and wasted resources, boosts operational efficiency, and ensures effective fraud monitoring and reporting for Bank Secrecy Act (BSA) compliance.

Access to a Central Repository of Fraudulent Activity

Financial Crimes Defender provides financial institutions with access to a central repository of fraudulent activity via the Federal Reserve’s FraudClassifier, built natively into the solution. FraudClassifier addresses the industry-wide problem of inconsistent classifications for fraud involving ACH, wire, or check payments.

Matt Riley, President of Complementary Solutions at Jack Henry, compared the use of real-time data in fighting fraud to catching an intruder at the front door before they enter the house. He said that Financial Crimes Defender is a game-changer for community banks and credit unions, allowing these institutions to detect and prevent fraud at first sight, ensuring assets and information remain secure within the institution.

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