Mastercard is further stepping up its use of Artificial Intelligence (AI) to counter fraud, leveraging the technology to scan transaction data across cards and merchants.
The US payments firm, one of the market leaders in global payments, is specifically using generative AI (GenAI). Like other payments stakeholders, the firm has been actively engaging with AI, particularly in the area of fraud prevention.
GenAI is being used to scan billions of cards and millions of transactions, Mastercard asserts. This enabled the firm to double the detection rate of compromised cards, reduce false positives during fraudulent transaction detections by up to 200% and increase the speed of identifying at-risk merchants by 300%.
Johan Gerber, Executive Vice President Security and Cyber Innovation at Mastercard, said: “Until now fraudsters may have thought they were operating in obscurity, seeking to launder the card details of millions of unsuspecting victims.
“Thanks to our world-leading cyber technology we can now piece together the jigsaw – enhancing trust to banks, their customers and the digital ecosystem as a whole.”
AI, particularly GenAI, is one of the big talking points in global paytech and fintech right now. The use of the technology for automation of various day-to-day processes in finance, as a means to reduce costs and save time, is becoming widespread.
So too is the use of AI for fraud prevention and detection, although fraudsters themselves have also been leveraging it. Creation of deep fakes, such as false identity documents or even false voices, is a particular area of concern for some stakeholders.
Mastercard’s latest update is the firm’s latest move in the fraud prevention area, specifically with regards to AI integration. Last month it launched the Scam Protect project whilst also partnering with Verizon, NatWest and the Global Anti-Scam Alliance.
In an interview earlier this year, the firm’s Senior Vice President of Security Solutions and Processing, Tulsi Narayan, explained its use of AI, saying: “Technologies such as artificial intelligence and biometric authentication hold significant potential for reducing payments friction in the customer journey. AI-powered algorithms can analyse transaction patterns and personalise payment experiences.”
