Mastercard Leverages Generative AI to Enhance Fraud Detection Speeds by 100%

Mastercard is harnessing the power of generative AI to enhance the speed and accuracy of fraud detection for compromised bank cards. Fraudsters employ a range of sophisticated tools and techniques, including spyware and malware, to unlawfully extract bank details. One particularly common method is card skimming, where covert devices are installed at payment terminals and ATMs to stealthily record credit card information. Alarmingly, card skimming alone is responsible for approximately $1 billion in losses every year, with stolen payment details often appearing on the dark web.

To combat these threats, Mastercard's generative AI tool meticulously scans transaction data across billions of customer cards to identify fraud patterns. This proactive approach considers 40 different security and infrastructure criteria. When the system identifies a potentially fraudulent transaction, it promptly alerts Mastercard, allowing for the transaction to be halted within seconds. Additionally, any further attempted transactions are closely monitored to thwart additional fraud attempts.

Mastercard has reported impressive results from this AI-driven initiative, including a doubling of detection rates for compromised cards and a remarkable 300% increase in the speed at which customers are notified of compromised accounts. Furthermore, the technology has significantly reduced false positive reports by 200%, enhancing overall customer trust and operational efficiency.

Johan Gerber, Mastercard’s executive vice president for security and cyber innovation, highlighted the critical impact of this technology by stating, “Until now, fraudsters may have thought they were operating in obscurity, seeking to launder card details of millions of unsuspecting victims. Thanks to our world-leading cyber technology, we can now piece together the jigsaw, enhancing trust for banks, their customers, and the digital ecosystem as a whole.”

This generative AI solution was developed leveraging capabilities acquired from Mastercard's 2020 purchase of cybersecurity firm RiskRecon. It is an integral part of Mastercard’s Cyber Secure suite of security solutions, which also launched in 2020. Cyber Secure features a variety of AI tools explicitly designed to prevent account breaches by closely monitoring suspicious transactions involving compromised bank cards.

Additionally, Mastercard is proactively exploring innovations such as contactless cards capable of offering enhanced protection against potential attacks from quantum computers. In a competitive landscape, Visa has also introduced their own generative AI-powered fraud detection solution, the VAAI Score Tool, which can identify potentially fraudulent payments in an astonishingly quick four milliseconds.

Mastercard's commitment to leveraging cutting-edge technology in the fight against fraud demonstrates its dedication to safeguarding customer interests in an increasingly digital financial landscape.