Mastercard has introduced a new artificial intelligence (AI)-powered tool aimed at helping banks detect and prevent payment fraud and scams in real-time. The tool, called ‘Consumer Fraud Risk,’ utilizes AI trained on years of transaction data from partner banks in the United Kingdom. By analyzing the data, the system can predict if a user is attempting a transfer of funds to an account previously associated with authorized push payment scams.
Ajay Bhalla, the president of cyber and intelligence at Mastercard, acknowledged that detecting scams like authorized push payment scams has been a challenge for banks in the past. The goal of the Consumer Fraud Risk solution is to leverage AI technology to enable banks to identify such scenarios in real time. Mastercard has been using AI for nearly a decade and considers it a foundational technology.
Mastercard reports that nine major banks in the United Kingdom, including Lloyds Bank, Halifax, Bank of Scotland, NatWest, Monzo, and TSB, have already signed up for the Consumer Fraud Risk solution. The tool is trained using transaction data from these banks, enabling it to detect potential fraud attempts effectively.
While the initial implementation has been with UK-based banks, Mastercard is in discussions with clients worldwide, including in the United States, India, and Australia, for potential expansion of the Consumer Fraud Risk solution. This indicates the company’s intention to extend its AI-powered fraud detection capabilities globally.
Mastercard has a track record of incorporating emerging technologies into its business model. In April, the company announced a Web3 user verification solution to enhance user verification standards and reduce opportunities for bad actors in the digital asset space. Additionally, Mastercard launched an accelerator program for musicians, which required participants to obtain nonfungible tokens (NFTs) to participate.
Mastercard’s new AI-powered Consumer Fraud Risk solution demonstrates its commitment to leveraging advanced technologies to combat payment fraud and scams. By using AI to analyze transaction data, the tool enables banks to detect potential fraudulent activities in real-time, enhancing security and protecting consumers. Mastercard’s expansion plans indicate a broader vision to implement the solution globally, providing increased fraud protection for financial institutions and their customers worldwide.
Get $200 Free Bitcoins every hour! No Deposit No Credit Card required. Sign Up