International payment system Mastercard has developed an advanced artificial intelligence (AI) tool to help banks prevent payment fraud in real time before any financial transactions take place.
Consumer Fraud Risk, which was announced on July 5, uses multi-year transaction data collected through partnerships with banks in the United Kingdom.
Ajay Bhalla, president of Mastercard's cyber intelligence unit, said in a statement that in the past it had been "incredibly difficult" for financial institutions to detect these types of scams. He went on to say that their customers do all the necessary checks and send funds themselves; the criminals have not had to breach any security protocols.
Currently, Mastercard says nine major UK banks, including Lloyds Bank, Halifax, Bank of Scotland, NatWest, Monzo and TSB, have joined the platform. Although the programme is so far only used by UK banks, Mastercard says it is in talks to expand the programme to many customers around the world, such as in the US, India and Australia.
The fight against payment fraud is intensifying, and Mastercard's AI-powered solution represents a significant step forward in the fight against fraudsters. By providing real-time data to banking institutions, Mastercard aims to keep people and businesses safe from fraudulent activity. The success of this initiative will not only secure financial exchanges, but also restore faith in digital transactions.