Mastercard is at the forefront of combating fraudulent activities with the deployment of generative artificial intelligence (AI) to enhance the detection of compromised bank cards. In response to the diverse array of tools and technologies employed by scammers, including spyware, malware, and card skimming techniques, Mastercard's innovative approach aims to thwart illicit activities and safeguard customer assets.
The prevalence of card skimming alone results in an estimated $1 billion in losses, with stolen payment details frequently posted online by criminals. Mastercard's generative AI tool scrutinizes transaction data from billions of customer cards, analyzing patterns indicative of fraudulent behavior across 40 security and infrastructure parameters.
Upon detecting a suspected fraudulent transaction, the tool promptly alerts Mastercard, enabling swift intervention to halt the payment within seconds. Subsequent transactions are closely monitored to prevent further fraudulent activity, underscoring Mastercard's commitment to proactive fraud prevention measures.
Mastercard reports significant enhancements in fraud detection and response capabilities since deploying the generative AI solution. Detection rates of compromised cards have doubled, while the speed of notifying customers about compromised accounts has increased by an impressive 300%. Moreover, the tool has substantially reduced false positive reports by 200%, minimizing unnecessary disruptions for legitimate cardholders.
Johan Gerber, Executive Vice President for Security and Cyber Innovation at Mastercard, emphasized the transformative impact of their advanced cyber technology in combating fraud and enhancing trust within the digital ecosystem. This initiative underscores Mastercard's dedication to fostering a secure and resilient financial landscape for banks, customers, and stakeholders alike.
The development of the generative AI solution builds upon Mastercard's acquisition of cybersecurity firm RiskRecon in 2020, leveraging its expertise to bolster fraud detection capabilities. Integrated into Mastercard's Cyber Secure suite of security solutions, the tool exemplifies the company's proactive stance in addressing evolving cybersecurity threats.
Mastercard's commitment to innovation extends beyond fraud detection, with ongoing exploration of contactless card technology designed to withstand potential attacks from quantum computers. This concerted effort aligns with industry trends, as evidenced by Visa's recent introduction of a similar generative AI-powered fraud detection solution, emphasizing the industry's collective commitment to fortifying payment security.
Mastercard's strategic adoption of generative AI underscores its leadership in driving advancements in fraud detection and prevention, reaffirming its position as a trusted partner in safeguarding global financial transactions.
