In an era where digital threats loom more significant than ever, Mastercard has unveiled its latest weapon in the war against fraud: Scam Protect. This suite of AI-driven solutions marks a pivotal shift in the financial industry’s approach to safeguarding consumers. Mastercard sets a new standard in the global fight against cunning cyber adversaries by collaborating with giants like Verizon, NatWest, and the Global Anti-Scam Alliance.
The FBI reports staggering losses of $12.5 billion due to internet scams in the U.S. in 2023, while in the UK, fraud incidents hit an unprecedented rate of one every 12 seconds during the first half of the year. These figures underscore a dire need for innovative defences. Enter Scam Protect, a robust array of AI technologies designed to detect and intercept fraudulent activities before they wreak havoc.
Chris Reid, Mastercard’s EVP of Identity Solutions, emphasizes the urgency of the situation: “Scammers are exploiting new technologies, making their deception and impersonation scams increasingly difficult for consumers to recognize,” said Reid. He outlined the dual approach of leveraging AI advancements alongside strategic partnerships, aiming to equip financial institutions with the tools to identify and thwart scams effectively.
AI-Powered Solutions at the Forefront
Mastercard’s strategy integrates multiple cutting-edge technologies:
- Mastercard Identity: This feature plays a crucial role in the lifecycle of consumer accounts, from validating identities during account creation to preventing unauthorized access.
- Behavioral Biometrics: This technology analyzes physical interactions with devices during transactions to pinpoint unusual activities that may indicate fraudulent attempts.
- Consumer Fraud Risk: Initially launched in the UK and now partnering with 10 major banks, this solution uses AI to provide real-time intelligence, helping to prevent money transfers to scammers.
- Mastercard Open Banking: This service enhances transaction security through real-time account validation and identity verification, bolstered by secure, consumer-permissioned data exchanges.
Strengthening Defences Through Strategic Partnerships
The collaboration with Verizon highlights a shared commitment to consumer security. Verizon’s advanced network capabilities are integrated with Mastercard’s identity insights to innovate scam prevention across various communication channels. “By combining our expertise, we’re building solutions to identify and thwart scammers before they initiate contact,” said Kyle Malady, CEO of Verizon Business.
Similarly, UK banks like NatWest are pioneering Mastercard’s technologies. Nick Elliot, Head of Payment Fraud at NatWest, stressed the importance of real-time monitoring in combating sophisticated scam techniques: “Together with Mastercard, we are using the power of AI to identify payments to fraudsters and stop them before money is lost.”
A Global Coalition for Consumer Safety
Mastercard’s role as a supporting member of the Global Anti-Scam Alliance exemplifies its commitment to consumer advocacy worldwide. The partnership focuses on educational campaigns and developing new strategies to ensure safe transactions and interactions.
Jorij Abraham, managing director of the Global Anti-Scam Alliance, welcomed Mastercard’s involvement: “Mastercard’s industry expertise and innovative technology will support our global network’s commitment to stopping scams and protecting consumers. We look forward to our continued collaboration in educating and empowering consumers worldwide.”
As digital threats evolve, so too must our defences. Mastercard’s Scam Protect is not just a product but a promise of a safer financial landscape where consumers can navigate confidently.
For more information on Scam Protect and how it can safeguard your transactions, visit Mastercard’s Scam Protect.
Written by: Kanda Limw
