Feedzai’s platform is capable of analysing every digital transaction, from card purchases to real-time transfers, for various risk signals as they occur. Credit: DenPhotos/Shutterstock.

Mastercard has collaborated with financial crime prevention company Feedzai, to enhance banks’ efforts in safeguarding customers from AI-driven scams.

This move comes as part of Mastercard’s ongoing investment in technology and strategic partnerships to combat fraud effectively.

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Mastercard will use Feedzai’s fraud platform, to accelerate the roll-out of its Consumer Fraud Risk (CFR) solution to customers across various key markets worldwide.

CFR is designed to provide intelligence to both the sender’s and receiver’s financial institutions, aiding in the real-time detection and prevention of scams, particularly in account-to-account payments.

Mastercard executive vice-president and Security Solutions head Johan Gerber said: “With more than half the world’s population affected, the scale of scam fraud is not only having a devastating impact on consumers, but also surpassing the GDP of many individual economies.

“Together with Feedzai’s global platform we will scale our first-of-its-kind scams solution to more markets, helping more financial institutions combat financial crime faster than before.”

Since the implementation of CFR in the UK in 2023, there has been a notable reduction in the value of authorised push payment (APP) scams, with a decrease of over 12%, according to the Payment Systems Regulator (PSR), according to the press release.

Feedzai’s platform is capable of analysing every digital transaction, from card purchases to real-time transfers, for various risk signals as they occur.

The combination of device intelligence, network data, and behavioural biometrics enables Feedzai’s AI to identify and halt suspicious activity on the spot, preventing fraud before any financial loss can occur.

Feedzai CEO Nuno Sebastiao said: “We are excited to expand our partnership with Mastercard to address escalating financial crime threats.

“The exponential growth in scams underscores the urgency for financial institutions to adopt AI-based, real-time solutions. “We’re excited to be working together with Mastercard to help bring the proven value of its CFR score to new markets for the first time.”