By 
Mastercard is leveraging its artificial intelligence (AI) capabilities to assist multiple UK banks in predicting and preventing real-time payment scams.
The global payments company has introduced its ‘Consumer Fraud Risk’ technology in the UK, utilizing extensive payments data to identify scams before funds are transferred out of a victim’s account.
The tool builds on the insights gained from Mastercard’s collaboration with UK banks to track money mule accounts over the past few years. By overlaying this information with specific analysis factors—such as account names, payment amounts, payer and payee history, and the payee’s connections to accounts associated with scams—the technology equips banks with the intelligence needed to intervene in real time and halt a payment before funds are lost.
Among the nine lenders implementing this technology are Lloyds, Halifax, Bank of Scotland, NatWest, Monzo, and TSB. TSB, in particular, has experienced a significant increase in fraud detection within just four months of utilizing the tool.
Paul Davis, Director of Fraud Prevention at TSB, explains, “Our partnership with Mastercard provides us with the necessary intelligence to identify fraudulent accounts and prevent payments from reaching them.”
According to Mastercard, this system could have a substantial impact on Authorized Push Payment (APP) fraud, which has been on the rise in recent years and currently accounts for 40% of fraud losses for UK banks.
“Banks have faced considerable challenges in detecting these scams,” says Ajay Bhalla, President of Cyber and Intelligence at Mastercard. “Customers pass all the required checks and willingly initiate the payment themselves, as criminals do not need to circumvent any security measures. As our lives become increasingly digital, this type of fraud undermines victims’ confidence in online interactions.”
Mastercard is now exploring opportunities to introduce this technology in other markets as well.
Comments