Mastercard supports the wider ecosystem against fraud with AI

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Mastercard has launched Scam Protect, a suite of solutions powered by AI technology, and partnered with Verizon, NatWest and Global Anti-Scam Alliance to fight against fraud. 

In an effort to tackle fraudsters, Mastercard has launched Scam Protect to help identify and prevent scams through AI technology. The accompanying partnerships  with several organisations across the ecosystem aims to mitigate the impact of fraud and educate consumers.

This initiative comes at a time when fraud is on the rise. According to the FBI, people in the US lost $12.5bn to internet scams in 2023 alone and in the UK, fraudsters were responsible for nearly 1.4 million thefts during the first half of 2023 – the equivalent of one every 12 seconds.

Chris Reid, EVP of Identity Solutions at Mastercard, commented: “Scammers are exploiting new technologies, making their deception and impersonation scams increasingly difficult for consumers to recognise.

“Building on our innovations in AI and key partnerships, we are supporting financial institutions with insights to better detect and prevent scams, while helping consumers learn how to spot them. This holistic approach means more people will be protected, fostering trust in our digital world.”

Through combining its identity, biometric, AI and Open Banking capabilities, Mastercard aims to help protect consumers across a range of scams, such as card-based and account-to-account payments (A2A), as well as fraudulent account openings.

In a further effort to fight against fraud, as mentioned above the payment giant has partnered with Verizon, NatWest and Global Anti-Scam Alliance.

Telecommunications company Verizon will use its network to deliver advanced data analytics and insights and produce authoritative research reports, such as the Verizon Data Breach Investigations Report (DBIR), which is used by enterprises to understand and help mitigate emerging cybersecurity threats.

So far, Verizon has protected over 80 million consumers from over 20 billion unwanted SPAM and scam calls via its Call Filter Product. By combining respective network technologies, the pair will design advanced tools to more accurately block scammers.

Kyle Malady, CEO of Verizon Business, said: “The security landscape is constantly evolving, as are scammers’ techniques, but one constant has been social engineering – using texts and phone calls to coerce people.

“Verizon and Mastercard share a commitment to helping protect consumers from security threats. By combining our expertise, we’re building solutions to identify and thwart scammers before they initiate contact.”

In terms of financial institutions, Mastercard has partnered with NatWest, which uses Mastercard’s AI-powered Consumer Fraud Risk solution to identify and prevent in real-time money being sent to scammers. 

According to TSB, in the UK an estimated £100m would be saved from preventing scams if other banks mirror its performance over a year.

Nick Elliot, Head of Payment Fraud at NatWest, remarked: “Impersonation scams, which coerce people into sending money in good faith or paying for goods they think are genuine, require no security breach or hack. They just need to trick their victim. As the sophistication of scams has progressed, so has our real-time monitoring and prevention of fraud. 
“Together with Mastercard, we are using the power of AI to identify payments to fraudsters and stop them before money is lost. In combination with our programme of consumer education and guidance on precautions, we are enhancing the safeguards for all our customers.”

The third and final industry Mastercard has targeted in its latest partnership sweep is consumer advocacy. This is through Mastercard being a supporting member of the Global Anti-Scam Alliance, which protects consumers worldwide from scams through awareness campaigns.

In collaboration with the Global Anti-Scam Alliance, Mastercard will share knowledge and establish connections to advocate for safe and secure ways to transact, interact and protect consumers.

Jorij Abraham, Managing Director of Global Anti-Scam Alliance, said: “We are pleased to welcome Mastercard to the Global Anti-Scam Alliance. Mastercard’s industry expertise and innovative technology will support our global network’s commitment to stopping scams and protecting consumers. We look forward to our continued collaboration in educating and empowering consumers worldwide.”

Fellow payments giant Visa has also been using the power of AI to fight against fraud recently, adding three new AI-powered risk and fraud prevention solutions to its services business as part of its end-to-end Visa Protect suite.