Mastercard Takes On Scammers with AI-Driven Fraud Prevention Tools

Mastercard has unveiled a range of AI-powered security solutions and forged industry partnerships with Verizon, NatWest, Entersekt and Global Anti-Scam Alliance in a mission to tackle the rise of scams and impersonation fraud.

By combining its identity, biometric, AI and open banking capabilities into the ‘Scam Protect’ suite of solutions, Mastercard hopes to safeguard consumers across a wide range of scams, from card-based and account-to-account payments to fraudulent account openings.

In 2023, people in the US lost $12.5billion to internet scams, while 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.

“Scammers are exploiting new technologies, making their deception and impersonation scams increasingly difficult for consumers to recognise,” comments Chris Reid, EVP of identity solutions at 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.

Industry collaborations

Mastercard has also teamed up with industry partners to tackle scams, mitigate their impact, and educate consumers.

Telcos

Leveraging Verizon’s network capabilities, which provide advanced data analytics and insights, along with research reports like the Verizon Data Breach Investigations Report (DBIR), Mastercard aims to address emerging cybersecurity threats.

Building upon their longstanding partnership, Mastercard and Verizon are working together to develop innovative solutions to protect consumers from scams across various channels. By integrating Mastercard’s identity insights with Verizon’s network technologies, these collaborative efforts aim to create advanced tools capable of more accurately identifying and blocking scammers.

“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.”

Financial institutions

NatWest has implemented Mastercard’s AI-powered Consumer Fraud Risk solution.

Nick Elliot, head of payment fraud, NatWest, commented: “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.”

Mastercard has also teamed up with Entersekt, a global financial authentication company, to utilise Mastercard Identity in the fight against scams. Entersekt employs Mastercard’s behavioural biometrics to enhance security for high-risk transactions, verifying sender biometrics to authenticate each transaction and protect senders from potential fraud before funds leave their bank account.

Consumer protection

Mastercard is a supporting member of the Global Anti-Scam Alliance, which protects consumers worldwide from scams through awareness campaigns. Together with the Global Anti-Scam Alliance, Mastercard will share knowledge and define joint actions to advocate for safe and secure ways to transact, interact and protect consumers.

As part of the Alliance, Mastercard recently helped establish the Global Anti-Scam Alliance chapter in Singapore, bringing together organisations in the region to collaborate on new solutions to protect consumers.

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