Author: Vivekananda J

In today’s fast paced financial environment, banks and financial institutions (FIs) are racing to address increasingly sophisticated fraud threats. Customers demand seamless and secure service, while regulators push for stricter compliance.

The question is: Can outdated fraud prevention systems meet these demands?

In 2024 alone, global banking fraud losses exceeded $45 billion, while cybercrime inflicted over $16.6 billion in damages worldwide, a staggering 33% increase from 2023. Meanwhile, emerging threats like deepfake fraud surged by 900%, and synthetic identity fraud losses jumped 7% in just the first half of 2024, underscoring the urgent need for smarter, AI-powered defenses that can keep pace with today’s sophisticated criminals.

Clari5 is transforming how FIs manage fraud and compliance with its real-time, unified Enterprise Fraud Management (EFM) and Anti-Money Laundering (AML) platform. Unlike traditional tools that only address narrow fraud use cases, Clari5 delivers a single, seamless solution that covers all banking channels, enabling banks to stay ahead of financial crime, ensure regulatory compliance, and elevate the customer experience.

Fraud has evolved into an intelligent, industrialized operation. Mule networks, synthetic identities, deepfakes, and real-time attacks are now the norm. Institutions have responded with analytics, AI, and automation — yet losses continue to rise. The issue isn’t a lack of innovation. It’s a lack of execution at scale.

Many fraud solutions are constrained by fragmented systems and infrastructure constraints inhibiting speed, complexity, or scale. Financial institutions increasingly need real-time inbound transaction monitoring and rapid mule account detection to stop sophisticated fraud before it impacts customers or the bank. To stay ahead, institutions need more than smarter ideas — they need an optimized foundation to bring them to life.

Fraud prevention is one of the most urgent and complex challenges in digital banking and payments. Banking, Cards, and Payments Card Losses reached US$533 billion in 2024. Celent estimates that a significant 70% of banking, cards, and payments transactions globally run on IBM Z mainframes. If advanced AI inferencing were applied to all banking and payments transactions running on IBM Z, it could result in as much as US$190 billion globally in additional captured fraud. (Celent Report 2025: Mitigating Fraud in The AI Age: Understanding the Challenge).

Where Strategy Meets Infrastructure

At Clari5, we believe effective fraud defense must move beyond isolated tools and toward orchestrated, real-time intelligence across the customer lifecycle.

Delivering on that requires infrastructure that can:

• Score millions of transactions per second
• Run inferencing in milliseconds, within the transaction
• Securely integrate behavioral, device, and external signals
• Remain compliant across jurisdictions — without latency

This is where the new IBM z17 and IBM LinuxONE Emperor 5 becomes critical. Purpose-built for data-intensive, AI-driven workloads, IBM LinuxONE Emperor 5 enables Clari5 to deploy real-time fraud prevention at the scale and speed today’s threats demand. The second generation on-chip AI accelerator on IBM LinuxONE Emperor 5 significantly boosts AI inferencing capabilities for fraud detection, risk assessment, and other critical applications.

IBM LinuxONE Emperor 5 and Clari5

The Power of Mitigating Fraud in the AI Age As financial crime becomes more reputational than operational, fraud management is no longer a backend process. It’s a strategic imperative. Together, IBM LinuxONE and Clari5 focus not just on detection, but on enabling our clients to execute their fraud strategy — intelligently, instantly, and at scale. With the right ideas and the right infrastructure that are purpose-built for mission-critical outcomes.

Clari5 Enterprise Fraud Risk Management (EFM) solution on IBM LinuxONE Emperor 5 enables banks and financial institutions with real-time inferencing during transactions, real-time mule account detection, and rapid AI decisioning at the point of data generation. Clari5’s AI/ML models leverage IBM’s Telum II processor to process huge volumes of data to reduce false positives and help in customer onboarding. ML models grow better with growing data elements, and the specialized Telum processor provides the much-needed energy efficient processing power for decisioning in real-time.

Extending the Value

Integration with Infosys Finacle Detecting fraud in real time is essential, but integrating that intelligence into everyday banking processes is what truly differentiates leading institutions.

With Infosys Finacle’s API-driven digital core banking platform, Clari5’s insights become an embedded part of transaction processing and customer engagement. Running this combined stack on IBM LinuxONE Emperor 5 delivers unmatched advantages:

• AI at Scale: Real-time inferencing with millisecond-level decisioning
• Cloud-Native Agility: Containerized deployment and seamless scalability
• Sustainability and TCO Efficiency: Consolidation that cuts both cost and carbon footprint
• Resiliency and Compliance: Always-on availability with regulatory confidence

A Differentiated Fraud Defense Stack

Together, IBM LinuxONE Emperor 5, Clari5, and Finacle create a differentiated platform where:

• LinuxONE Emperor 5 provides the secure, energy efficient, AI-ready infrastructure
• Clari5 delivers orchestrated, real-time fraud intelligence
• Infosys Finacle operationalizes that intelligence across the customer lifecycle

This synergy allows banks to replace fragmented systems with a cohesive, cloud-ready fraud prevention strategy, one that protects revenue, strengthens trust, and accelerates digital transformation.

Looking Ahead

IBM LinuxONE Emperor 5 is built to redefine AI at scale, drive innovation, power new workloads, and enhance productivity—all in a secure, reliable, and resilient environment. Clari5 is committed to helping clients leverage IBM LinuxONE Emperor 5’s potential and work together to empower organizations to modernize systems, act in real-time, and maintain transaction integrity.

Let’s Build a Smarter Defense Together

Reach out to learn how Clari5 and IBM LinuxONE can help your financial institution stay one step ahead of evolving threats. Discover more about our solution or set up a discovery workshop—we’d love to connect.

In today’s fast paced financial environment, banks and financial institutions (FIs) are racing to address increasingly sophisticated fraud threats. Customers demand seamless and secure service, while regulators push for stricter compliance. The question is: Can outdated fraud prevention systems meet these demands?

 In 2024 alone, global banking fraud losses exceeded $45 billion, while cybercrime inflicted over $16.6 billion in damages worldwide, a staggering 33% increase from 2023. Meanwhile, emerging threats like deepfake fraud surged by 900%, and synthetic identity fraud losses jumped 7% in just the first half of 2024, underscoring the urgent need for smarter, AI-powered defenses that can keep pace with today’s sophisticated criminals.

Clari5 is transforming how FIs manage fraud and compliance with its real-time, unified enterprise fraud management (EFM) and anti-money laundering (AML) platform. Unlike traditional tools that only address narrow fraud use cases, Clari5 delivers a single, seamless solution that covers all banking channels, enabling banks to stay ahead of financial crime, ensure regulatory compliance, and elevate the customer experience.

The Neuroscience of Fraud Prevention
Clari5 has been transforming fraud prevention over the last two decades, iterating continuously to address challenges typically faced by large FIs and to provide an enterprise-wide solution equipped for the new-age fraud landscape. Just as the brain processes threats instantly, Clari5 can help process fraud intelligence across channels in milliseconds.

1. Real-Time, Enterprise-Wide Fraud Prevention
Unlike traditional systems that monitor only certain channels (e.g., card or payment fraud), Clari5 works across ALL banking channels: Core Banking, ATM, branch, internet banking, mobile, and applications by monitoring financial and non-financial transactions in real time.

For example: When fraud occurs in one channel, Clari5 immediately blocks all suspicious activity across the bank, preventing further damage.

2. Unified Fraud and Compliance Management
Too often, fraud detection and AML systems operate in silos. Clari5 combines fraud detection and AML into a single unified platform. This ensures compliance without duplication, enhances operational efficiency, and simplifies regulatory reporting.

3. AI-Powered Behavioral Analytics
Traditional solutions rely on outdated rules or statistical models, Clari5 uses cutting-edge AI and machine learning (ML) to analyze customer behaviors across multiple touchpoints. With behavioural analytics, Clari5:

• Detects anomalies in real time.
• Learns from previous patterns to stop fraud before it happens.
• Continuously adapts to evolving risks, making FIs proactive, not reactive.

4. Built to Scale
Clari5 can scale seamlessly to handle massive transaction volumes. It integrates effortlessly with your current systems, ensuring minimal disruption and faster value realization.

5. Customer-Centric Design
Clari5 doesn’t just stop fraud, it also improves the customer experience.

Unlike generic fraud alerts that frustrate customers by halting legitimate transactions, Clari5’s AI learns each customer’s transaction behavior. This reduces false positives and enables smooth, secure transactions. A win-win for the bank and its customers!

Why Clari5 Stands Out

Enterprise Fraud Management vs Traditional Systems

The Future Belongs to Intelligent Banks
As financial crime continues evolving at unprecedented speed, competitive advantage will belong to institutions that can prevent rather than detect, enhance rather than add friction, and generate revenue rather than merely control costs.

This intelligence revolution isn’t coming, it’s here. While legacy systems struggle with architectural constraints and operational limitations, intelligent banks operate with next generation fraud prevention that transforms security into competitive advantage (anchored in principles such as those outlined in Clari5’s earlier article 25 Tenets for the Future of Fraud Risk Management)

The Choice Is Clear
FIs face a defining moment: continue with yesterday’s detection-focused limitations, or embrace tomorrow’s prevention-focused intelligence.

The banks choosing intelligence aren’t just improving their fraud systems—they’re fundamentally transforming their relationship with risk, customers, and revenue generation.

Leading banks in Asia, Africa, and the Middle East have reduced fraud losses by up to 70% within 6 months of deploying Clari5’s real-time EFM and AML platform, which processes 10,000+ transactions per second and protects over 340M accounts.

Explore Case Studies or Request a Demo to explore Clari5’s intelligence advantage.