The efforts include leveraging Mastercard’s “Consumer Fraud Risk” AI solution, as well as its network view of account-to-account payments. Mastercard uses insights from tracing activity and overlays them with specific analysis factors, coming up with intelligence and helping banks combat fraud.
In the UK, the payments giant has so far partnered with nine banks, including Lloyds, Halifax, Bank of Scotland, Natwest, Monzo and TSB.
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“Banks have found these scams incredibly challenging to detect”, said Ajay Bhalla, president of Cyber and Intelligence at Mastercard. “Their customers pass all the required checks and send the money themselves; criminals haven’t needed to break any security measures. As we all live more digital lives, this type of fraud erodes victims’ confidence to interact online. Our goal is to build and maintain that trust. Using the latest AI technology, we are helping banks identify and predict which payments are being made to fraudsters and stop them in real-time.”
Authorised push payment or APP fraud now accounts for 40% of UK bank fraud losses.
GlobalData says APP fraud losses reached £811m in 2022, with the number projected to grow at a CAGR of 20.5% between 2021 and 2026.
Overall, fraud losses reached 0.04% of global card payment value in 2022, according to GlobalData’s “Trends in Payment Fraud” report, published in February 2022.
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By GlobalDataBesides Mastercard, other payments giants have stepped up their efforts to combat fraud recently. In May 2023, Visa partnered with Prove, enabling its clients to access Prove’s Pre-Fill identity verification solution, which reduces fraud, deters abandonment during the registration process, and increases revenue by pre-populating application forms with verified and authenticated information.
Speaking about Mastercard’s stepped-up efforts to combat fraud, Paul Davis, director of Fraud Prevention at TSB, commented: “Spotting fraudulent payments among millions made every day is like finding a needle in a haystack, with scams becoming ever more complex – so prevention and monitoring tools are key.
“Our partnership with Mastercard is providing the intelligence needed to identify fraudulent accounts and prevent payments ever reaching them”, Davis concluded.
