Mastercard has taken the initiative to utilize AI technology to assist its clients, particularly banks, in combating online scams. The payment giant claims that its AI tool can effectively predict fraud, thereby preventing the loss of funds from user accounts.
As technological advancements continue to shape our world, the prevalence of online theft and scams has also risen globally. These scams come in various forms, such as romance, investment, product, and service scams; threats and extortion scams, and job and employment scams.
According to the development details from Mastercard, their new tool is currently being used in the UK by banks such as Lloyds Bank, Halifax, Bank of Scotland, NatWest, Monzo, and TSB. TSB, an early adopter of Mastercard’s Consumer Fraud Risk Tool, has reported significant improvements in fraud detection within just four months. If other banks can replicate this success, it is estimated that nearly £100 million could be saved in the UK.
Ajay Bhalla, President of Cyber and Intelligence at Mastercard, emphasized the challenges faced by banks in detecting scams. Criminals exploit customers who willingly send money, bypassing security measures. To restore confidence in online interactions, Mastercard utilizes advanced AI technology to assist banks in real-time identification and preventing fraudulent payments.
Paul Davis, Director of Fraud Prevention at TSB, highlights the challenge of detecting fraudulent payments amidst a large volume of transactions. To tackle this issue, prevention, and monitoring tools play a crucial role. TSB’s partnership with Mastercard enables them to leverage intelligence that aids in identifying fraudulent accounts and blocking payments before processing.
In recent times, ChatGPT has also contributed to the development of AI tools used to create robust and secure solutions in the crypto industry. Bybit, Hedera, DeFiLlama, and Solana are examples of firms benefiting from these advancements.
Mastercard has expressed plans to expand its reach beyond the UK and into the international market. This expansion will enable the company to serve a larger community, leveraging its AI-powered cybersecurity solutions that have successfully prevented over $35 billion in fraud losses over the past 3 years.