Mastercard has teamed up with financial crime prevention company Feedzai to help financial institutions prevent scams.
Mastercard’s press release, which was published on Tuesday, February 18, noted that as payments continue to evolve, fraudsters are increasingly using artificial intelligence to scam consumers. It was also highlighted in this case that last year the mentioned crimes had consequences in the form of more than $1 trillion lost to victims of the specified criminals. Moreover, a press release noted that more than 50% of consumers encounter a scam at least once a week. Probably, in this case, it does not mean the direct commission of crimes but attempts at such actions.
Mastercard will use the Feedzai platform to deploy its Consumer Fraud Risk (CFR) solution to customers across many key markets around the world. The mentioned platform is available in more than 90 countries.
The press release contains information according to which CFR provides sending and receiving financial institutions with data on account-to-account payment transactions to spot and prevent scams in real-time. Since going live in the United Kingdom in 2023, the value of authorized push payment (APP) scams has decreased by more than 12% in this country.
The press release also noted that Feedzai’s AI-native Financial Crime Prevention Platform is used by leading financial institutions to protect more than a billion consumers worldwide, and upwards of $8 trillion in transactions annually.
Johan Gerber, executive vice president, head of Security Solutions at Mastercard, said that the current scale of scam fraud is not only having a devastating impact on consumers but also exceeds the gross domestic product (GDP) of many individual economies. According to him, more than half of the world’s population is affected by scams. He also stated that Mastercard with Feedzai’s global platform will scale the first-of-its-kind scams solution to more markets, helping more financial institutions combat financial crime faster than before.
Industry research results indicate that in the United States, more than 70% of financial institutions use artificial intelligence and machine learning for fraud detection. In 2023, the corresponding figure was 66%. The mentioned technologies can identify anomalies and patterns that may not be detected by human analysts, allowing banks to make decisions faster. Artificial intelligence and machine learning analyze large amounts of transaction data in real-time. In this case, fraudulent payments are prevented before the relevant operations are performed.
It is worth noting that the personal awareness of users is also one of the tools for countering fraudulent threats in the cyber environment. For example, an Internet search query like how to know if my camera is hacked will allow anyone to get information about signs of unauthorized access to the device. Digital literacy is an effective tool for countering cybercrime. This knowledge should be updated periodically, as criminals seek to use the most modern technologies in their activities.
