In a press release this week, Mastercard touted its AI-powered solution to help banks combat payment scams. According to the company, several banks in the UK are actively using its anti-fraud system. Mastercard claims that its system has demonstrated great success in preventing various payment scams.
Taking the payment scams battle to the scammers
According to Mastercard, a whole host of scams have been perpetrated on consumers and companies in recent years. The company cited various examples of fraud, noting:
“From romance scams to fictious online deals, impersonation scams of all kinds have plagued people and businesses over recent years and shaken the confidence of victims. However, the tide is turning. Mastercard is taking the fight to the fraudsters with its one-of-a-kind AI powered ‘Consumer Fraud Risk’ solution, now live in the UK.”
The Consumer Fraud Risk solution uses AI capabilities to assist banks in predicting and stopping payment scams. Reportedly, the system relies on “large-scale payments data” to recognize scams before payments are made.
Apparently, Mastercard and its partner banks have been gathering insights into scammers’ flow of funds activity for the last five years. The artificial intelligence uses that data to provide banks with intelligence they can use to protect their customers.
TSB Director of Fraud Prevention Paul Davis praised Mastercard’s role in the effort to combat fraud:
“Spotting fraudulent payments among millions made every day is like finding a needle in a haystack, with scams becoming ever more complex – so prevention and monitoring tools are key. Our partnership with Mastercard is providing the intelligence needed to identify fraudulent accounts and prevent payments ever reaching them.”
The company has partnered with a total of nine UK banks, including Bank of Scotland, Halifax, Lloyds Bank, and TSB. The AI payment scam system combines with other insights related to bank consumers and their spending behavior.