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Mastercard product to employ AI to fight against scam artists

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Defence strategy: Chris Reid, EVP of Identity Solutions, Mastercard (File photograph)

Mastercard has announced a new artificial intelligence-powered suite of solutions to combat the growing threat of scams in the marketplace.

The company said scammers are using the latest technologies like AI to deceive people.

According to the Federal Bureau of Investigation, Mastercard said, across the United States people lost $12.5 billion to internet scams in 2023 alone.

In Britain, fraudsters were responsible for nearly 1.4 million thefts during the first half of 2023 – the equivalent of one every 12 seconds.

Mastercard said Scam Protect is a suite of specialised solutions powered by cutting-edge AI technologies, which help identify and prevent scams.

Mastercard is also partnering with organisations across the ecosystem to fight scams.

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

“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.”

By combining its identity, biometric, AI and open banking capabilities, Mastercard said, it can help protect consumers across the spectrum of scams, from card-based and account-to-account payments to fraudulent account openings.

Mastercard Identity assists in verifying that someone is who they say they are throughout the life cycle of an account. This is critical because scammers open or take over accounts to fraudulently apply for credit, create so-called “mule” bank accounts to receive stolen funds, or to impersonate someone using a false identity.

From the moment an account-to-account or card-based payment is initiated, Mastercard’s behavioural biometrics can access physical interactions across devices to identify any unusual behaviour, such as hesitating while typing or interacting with the website or app.

Specific to real-time account-to-account payments, Mastercard’s Consumer Fraud Risk solution provides banks with the intelligence to help detect and prevent payments to scammers.

Now live in Britain with ten large banks, Consumer Fraud Risk leverages AI and Mastercard’s unique view of account-to-account transactions, to help banks intervene in real time and stop a payment to a scammer before funds are sent.

When a consumer initiates an account-based payment from their bank account, Mastercard enables account validation to confirm account ownership and validate identity details in real-time through Mastercard Open Banking, which draws on the safe exchange of consumer-permissioned data to facilitate frictionless and secure payments.

Mastercard said it is also collaborating with organisations across the ecosystem to tackle scams, mitigate their impact, and educate consumers.

The company is partnering with Verizon to address the growing threat of scams. Today, Verizon’s robust network capabilities deliver advanced data analytics and insights, and produces authoritative research reports such as the Verizon Data Breach Investigations Report used by enterprises to understand and help mitigate emerging cybersecurity threats.

Through its Call Filter product, Verizon also has protected over 80 million consumers from over 20 billion unwanted spam and scam calls.

“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,” said Kyle Malady, CEO, Verizon Business.

“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.”

Mastercard is also partnering with Entersekt, a global financial authentication company that is using Mastercard Identity to help financial institutions fight scams.

Using Mastercard’s behavioural biometrics, Entersekt enables banks to “step up” higher-risk transactions, verifying a sender’s biometrics to authenticate the transaction. This extra step can protect senders before the funds leave their account.

Mastercard is a supporting member of the Global Anti-Scam Alliance, which protects consumers worldwide from scams through awareness campaigns.

"We are pleased to welcome Mastercard to the Global Anti-Scam Alliance,” said Jorij Abraham, managing director of the 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.”

Building solutions: Kyle Malady, CEO, Verizon Business (File photograph)
Continued collaboration: Jorij Abraham, managing director, Global Anti-Scam Alliance (File photograph)

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Published April 29, 2024 at 7:58 am (Updated April 29, 2024 at 7:30 am)

Mastercard product to employ AI to fight against scam artists

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