Jack Henry, NuData beef up security with behavioral analytics

Core technology provider Jack Henry is upgrading its security measures for banking clients. The Monett, Mo.-based company this week announced it is partnering with NuData Security to provide more robust measures to identify fraudulent online banking users. “We already detect some levels of anomalous traffic and block that,” said Chad Killingsworth, software engineering director at Jack Henry. “This will be an additional layer of security for institutions.” NuData’s solution relies on behavioral analytics to determine whether an end user is legitimate. By relying on how customers interact with digital banking to identify abnormal behavior, the company aims to create a comprehensive security system that creates minimal friction for end consumers. When determining the fraud risk of consumers logging into their online bank accounts, NuData’s technology examines factors like the device used, its location and typing patterns to see if it matches with previous sessions. The technology is boosted by what the company calls “passive biometrics,” such as the force and speed of someone’s typing, as opposed to active biometrics like a fingerprint or retina scan. According to NuData, which was acquired by Mastercard in 2017, passive biometrics keep security strong without getting in the way of the customer journey. “It’s more of a holistic, dynamic view of the consumer interaction,” said Robert Capps, vice president of marketplace innovation at NuData. “If a consumer has a very strong interactional footprint within our system, we would be able to identify when someone comes in who might have gotten their credentials through malware or phishing or from a data breach.” Capps added that if one part of a customer interaction is abnormal, such as someone typing much slower than usual, the technology examines other factors, like location and device, to determine if the customer is a fraud risk. Jack Henry is integrating NuData with its Banno platform, a cloud-hosted solution that helps banks create digital banking experiences. Killingsworth said banking clients will determine what steps to take if a customer is deemed high-risk. Some users might be asked to verify their identity through text, but if an interaction is deemed too risky, it might be blocked altogether. Jack Henry, which has about 9,000 clients nationwide, is starting to roll out the upgraded security solution this month. See also: Jack Henry the newest core provider to offer a digital bank in 90 days According to Killingsworth, Jack Henry clients are seeing an increased number of cybersecurity attacks. While a year ago such attacks were rare, he said they happen on a daily basis now. Other core vendors are taking note and upgrading their security services as well. Temenos, for example, announced a partnership with Microsoft in May to help banks upgrade their crime-fighting software. “Criminals are quick to take advantage of people and quick to take advantage of new systems that are put in place,” Adam Gable, product director for financial crime, treasury and risk at Temenos, previously told Bank Innovation. “Regulators worldwide have warned banks to be wary of financial crime.” Bank Innovation Build , which takes place Sept. 9-10 as a virtual experience, is a must-attend industry event for professionals overseeing financial technologies, product experiences and services. Register here .

Jack Henry, NuData beef up security with behavioral analytics

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