Mastercard Utilizes Generative AI to Combat Rising Fraud Levels
Fraudulent activities have surged dramatically, with North America alone witnessing a staggering 70% increase in fraud rates throughout 2023, as revealed by a recent report from Featurespace, as outlined in The Fintech Times. This alarming trend has left many puzzled about the most effective strategies to safeguard consumers against such threats.
In response to the escalating challenge posed by fraudsters, Mastercard, a leading payments corporation, has embarked on adopting generative AI techniques to fortify the protective measures safeguarding consumers and the broader payments ecosystem.
Mastercard’s Decision Intelligence (DI), an advanced real-time decisioning solution, already plays a pivotal role in assessing and securely approving a colossal 143 billion transactions annually. Now, leveraging generative AI technology, Mastercard aims to scrutinize an unprecedented one trillion data points to forecast the authenticity of transactions, thereby augmenting its existing capability to analyze account details, purchase histories, merchant interactions, and device information in real-time.
The innovative ‘Decision Intelligence Pro’ represents the next evolution in this technology, as it evaluates the interrelationships among multiple entities associated with a transaction to gauge its risk level. In less than 50 milliseconds, this cutting-edge solution refines the overall DI score, furnishing banks with sharper data insights.
Mastercard has disclosed that initial simulations demonstrate a remarkable enhancement in fraud detection rates, with an average increase of 20% and spikes of up to 300% in certain scenarios.
Ajay Bhalla, President of Cyber and Intelligence at Mastercard, underscored the significance of leveraging AI in combating fraud, stating, «With generative AI, we are revolutionizing the velocity and precision of our anti-fraud measures, thwarting the endeavors of criminals, and safeguarding both banks and their clientele. By empowering our algorithm, we enhance our capacity to foresee potential fraudulent activities, thereby fostering trust in every transaction.»
Bhalla further emphasized the precision of the solution, achieved through real-time scanning of potential transaction points, which not only bolsters accuracy but also diminishes false positives by over 85%.
The augmentation of DI aims to bolster banks’ capabilities in shielding cardholders from illicit transactions while minimizing instances of false positives—legitimate transactions erroneously flagged as fraudulent.
Mastercard’s adoption of generative AI represents a proactive stride towards fortifying defenses against the escalating threat of fraud, underscoring the company’s commitment to ensuring the integrity and security of global payment systems.