Mastercard AI-powered technology to assist banks in combating fraud
July 6, 2023 2:43 PM
Mastercard has announced a new AI-powered tool for banks to use in gathering intelligence for predicting fraud and scams involving real-time payments.
Mastercard has introduced a new artificial intelligence (AI)-powered solution designed to assist banks in combating payment fraud and scams in real-time prior to any monetary abuses.
According to a July 5 statement→ from the financial services company, the 'Consumer Fraud Risk' solution's AI is trained using years of transaction data obtained in collaboration with UK banks.
Through data analysis, the system may forecast whether or not a user is attempting to transfer funds to an account previously connected with "authorized push payment scams."
In the release, Ajay Bhalla, Mastercard's VP of cyber and intelligence, stated that in the past, these types of scams were "incredibly difficult" for banks to detect.
"Their customers pass all required checks and send the money themselves; criminals have not had to circumvent any security measures."
He stated that the idea is to employ AI to detect such instances in real-time. According to the official statement, Mastercard has been employing AI for "the better part of the last decade" and described it today as a "foundational technology."
Mastercard states that nine of the UK's largest banks have signed up for the solution, including Lloyds Bank, Halifax, Bank of Scotland, NatWest, Monzo, and TSB.
While the initiative has so far only been used with banks in the United Kingdom, Mastercard says it is in talks with clients in the United States, India, and Australia about expanding it.
Mastercard has a history of incorporating new technology and Web3 tools within its business model.
In April, the company unveiled a Web3 user verification solution in order to improve user verification standards and "reduce the opportunities for bad actors" in the digital asset industry.
Mastercard also established an accelerator program for artists in April, which required participants to receive a nonfungible token (NFT) in order to participate.