In an unprecedented move, Mastercard has launched “Scam Protect,” a groundbreaking suite of AI-driven tools designed to fortify defences against the escalating menace of scams. This initiative marks a significant advancement in the financial services industry, offering a robust response to the sophisticated tactics employed by fraudsters globally.
Fraud is an ever-growing concern, with scammers increasingly leveraging advanced technologies to deceive victims. In 2023, Americans reported losses topping $12.5 billion due to internet scams, while in the UK, scam incidents reached a staggering rate of one every 12 seconds in the first half of the year alone. These alarming statistics underscore the urgent need for innovative solutions in scam prevention.
Mastercard’s response, Scam Protect, harnesses the power of artificial intelligence to enhance security across various financial interactions, from card-based transactions to real-time banking operations. The initiative aims to shield consumers and provides critical support to financial institutions in identifying and halting potential fraud at the earliest stages.
“Scammers are constantly evolving, using sophisticated technologies to craft more convincing scams that are harder for consumers to detect,” explained Chris Reid, EVP of Identity Solutions at Mastercard. “By integrating AI with our extensive insights in identity and banking, we’re empowering banks and consumers with the tools needed to preempt scams, enhancing trust in our digital ecosystem.”
AI-Powered Innovations in Identity Verification and Fraud Prevention
At the heart of Scam Protect are several AI-enhanced capabilities:
- Mastercard Identity Check: This feature supports the verification of identities throughout an account’s lifecycle, which is crucial for preventing the fraudulent opening or hijacking of accounts.
- Behavioral Biometrics: This technology analyzes how users interact with devices during transactions and identifies anomalies that may indicate scam activities, such as hesitation in typing or unusual interaction patterns.
- Consumer Fraud Risk Solution: Initially rolled out in the UK with ten significant banks, this tool uses AI to evaluate account-to-account transactions in real-time, enabling banks to block transfers to scammers before the funds are released.
- Mastercard Open Banking: This platform ensures secure and seamless payment processes by verifying account ownership and user identities in real-time by exchanging consumer-permission data.
Strategic Partnerships Enhance Global Scam Defense Efforts
Mastercard’s strategy extends beyond technological innovation to include significant collaborations across industries. A key partnership with Verizon harnesses the telecom giant’s advanced network capabilities and data analytics to develop new tools that better identify and block scam attempts across multiple channels.
“By combining our network insights with Mastercard’s identity solutions, we are crafting advanced defenses against the constantly changing tactics of scammers,” stated Kyle Malady, CEO of Verizon Business.
Furthermore, Mastercard is collaborating with NatWest in the UK, where the bank utilizes the Consumer Fraud Risk solution to effectively protect customers from scam-related money transfers. “We’re enhancing our real-time defenses against increasingly sophisticated scams, safeguarding our customers’ financial health,” noted Nick Elliot, Head of Payment Fraud at NatWest.
Global partnerships, such as the Global Anti-Scam Alliance, also support the initiative to bolster consumer protection and scam awareness worldwide.
Empowering Consumers and Securing Transactions
With these advancements, Mastercard is setting new standards in the fight against financial fraud, ensuring that consumers can confidently conduct transactions. Mastercard and its partners are building a safer financial environment for everyone by providing essential tools and knowledge.
For more information on Scam Protect and to access resources on preventing scams, click here.
Written by: My Thanh Pham
