Mastercard’s AI tool aids banks in combating fraud.
Mastercard has launched a new artificial intelligence (AI)-powered tool aimed at helping banks combat payment fraud and scams in real time, before any financial harm occurs.
According to an announcement from the financial services provider on July 5, the AI of the ‘Consumer Fraud Risk’ solution has been trained using years of transaction data received in collaboration with banks in the United Kingdom.
By analyzing the data, the system can predict whether a user is attempting to transfer funds to an account previously associated with “authorized push payment scams.”
Ajay Bhalla, President of Cyber and Intelligence at Mastercard, stated in the announcement that these types of scams have historically been “extremely challenging” for banks to detect.
“Their customers pass all the required checks and send the money themselves; criminals haven’t needed to break any security measures.”
The goal is to use AI to enable banks to detect such scenarios in real time. According to the official announcement, Mastercard has been utilizing AI for the majority of the past decade and considers it a foundational technology.
Mastercard reports that so far, nine of the largest banks in the United Kingdom, including Lloyds Bank, Halifax, Bank of Scotland, NatWest, Monzo, and TSB, have adopted this solution.
Cointelegraph has contacted Mastercard for additional comments on its Consumer Fraud Risk solution and its overall use of AI.
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While the program has been implemented with UK-based banks, Mastercard states that it is in discussions to expand it with various clients worldwide, including in the United States, India, and Australia.
Mastercard has a history of integrating emerging technologies and Web3 tools into its business model.
In April, the company announced a Web3 user verification solution with the aim of enhancing user verification standards and “reducing opportunities for bad actors” in the digital asset space.
Also in April, Mastercard launched an accelerator program for musicians, requiring participants to obtain a nonfungible token (NFT) in order to participate.
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