Mastercard has introduced a new AI-driven tool designed to assist banks in combating payment fraud and scams in real-time. The tool, called “Consumer Fraud Risk,” utilizes artificial intelligence trained on years of transaction data provided by partnering banks in the United Kingdom.
By analyzing this data, the AI system can predict whether a user is attempting to transfer funds to an account associated with “authorized push payment scams.” This type of scam has proven difficult for banks to detect in the past, as customers willingly initiate the transactions, bypassing established security measures.
The primary objective of the AI-powered tool is to enable banks to identify such scenarios in real-time, helping them take proactive measures against fraudulent activities. Mastercard emphasizes that it has been leveraging AI technology for nearly a decade and considers it a foundational element of their operations.
Currently, nine major banks in the UK, including Lloyds Bank, Halifax, Bank of Scotland, NatWest, Monzo, and TSB, have adopted the Consumer Fraud Risk solution. However, Mastercard is in discussions to expand its implementation with clients worldwide, including those in the United States, India, and Australia.
This initiative aligns with Mastercard’s track record of embracing emerging technologies within its business model. In April, the company announced a Web3 user verification solution to enhance standards of user authentication in the digital asset space, aiming to minimize opportunities for malicious actors. Additionally, Mastercard launched an accelerator program for musicians, where participants were required to obtain a nonfungible token (NFT) to participate.
As the fight against fraud continues to evolve, Mastercard’s AI-powered tool represents a significant advancement in supporting financial institutions’ efforts to safeguard real-time payments. By leveraging the power of AI and analyzing transactional data, banks can stay one step ahead of fraudsters, protecting their customers and ensuring the security of their financial systems.