Mastercard has introduced a new artificial intelligence (AI) tool designed to assist banks in combating payment fraud and scams in real time. The "Consumer Fraud Risk" solution, developed using years of transaction data in collaboration with the Bank of England, utilizes AI to predict if a user is attempting to transfer funds to an account linked to "authorized push payment fraud." This type of scam has traditionally been difficult for banks to detect, as customers willingly initiate the transfers without breaching any security measures. aim to leverage AI technology to enable banks to identify such scenarios in real time.
Nine of the UK's largest banks, including Lloyds, Halifax Bank, Bank of Scotland, NatWest, Monzo, and TSB, have already adopted the solution, as reported by Mastercard. While initially implemented in UK banks, the company is in discussions with clients world wide , including those in the US, India, and Australia, for further expansion. Mastercard emphasizes its extensive experience in utilizing AI, which it has considered a foundational technology for nearly a decade.
Mastercard has a track record of incorporating emerging technologies and Web3 tools into its business model. In April, the company unveiled a Web3 user verification solution aimed at enhancing user verification standards and reducing opportunities for fraudulent activities in the digital asset space. Additionally, Mastercard launched an accelerator program for musicians that required participants to acquire a non-fungible token (NFT) to participate. These initiatives highlight Mastercard's commitment to staying at the forefront of technological advancements and leveraging them to address industry challenges.
