Mastercard Launches AI Tool to Help Banks Fight Fraud7. Juli 2023
• Mastercard has launched a new AI-powered tool to help banks fight payment fraud and scams in real-time.
• The ‘Consumer Fraud Risk’ solution uses AI trained on years of transaction data from banks in the United Kingdom.
• Nine major UK banks have signed up for the program with potential expansion into other countries such as US, India, and Australia.
Mastercard Launches AI Tool to Fight Payment Fraud
Mastercard has announced a new artificial intelligence (AI)-power tool which is aimed at helping banks fight payment fraud and scams in real-time prior to any monetary exploits. The “Consumer Fraud Risk” solution is being used by nine major UK banks including Lloyds Bank, Halifax, Bank of Scotland, NatWest, Monzo and TSB. The AI system is trained using years of transaction data received in partnership with these banks and can predict whether or not a user is attempting a transfer of funds to an account previously associated with “authorized push payment scams”.
How the Solution Works
The solution works by analyzing data from previous transactions to determine if someone is attempting a fraudulent transfer before it happens. This allows banks to detect potential scams in real time before any money is lost. Mastercard has been using AI for the better part of the last decade as they see it as foundational technology for detecting frauds in payments.
Currently, this system is only being used by UK based banks but Mastercard says that they are discussing expansion with clients around the world including US, India and Australia. Mastercard also recently launched an accelerator program for musicians that required participants to use their Web3 verification solution which aims to reduce opportunities for bad actors in the digital asset space.
Goals of Solution
The goal behind this program is to keep customers safe while allowing them access to services without worrying about fraudsters taking advantage of their financial information or transfers going through without authorization from them first. According to Ajay Bhalla, President of Cyber and Intelligence at Mastercard: “Criminals haven’t needed to break any security measures… Our goal [is] using AI allow banks catch these scenarios in real time.“
In conclusion, Mastercard’s ‘Consumer Fraud Risk’ solution provides an invaluable service for both consumers and businesses alike; offering protection against payment scams while still allowing people access secure digital services without fear of having their finances compromised by malicious actors on the web today