Nine UK banks tap Mastercard for new AI-powered fraud risk solution
Mastercard has rolled out its new artificial intelligence (AI) powered Consumer Fraud Risk solution in the UK, with nine banks adopting the tech to help fight real-time payment scams.
Mastercard launches new AI Consumer Fraud Risk solution in the UK
Lloyds Bank, Halifax, Bank of Scotland, NatWest, Monzo and TSB are six of the nine UK banks partnering with Mastercard for its latest offering.
For the last five years, Mastercard says it has been working with UK banks to follow the flow of funds through mule accounts created by criminals.
Based on insights from this tracing activity, along with specific analysis factors such as account names, payment values and payer and payee history, Mastercard’s AI solution provides banks with real-time intelligence to stop a payment before funds are lost.
TSB, one of the first banks to adopt the solution, says it has “dramatically increased” its fraud detection in the first four months of usage. Based on TSB’s results, if all banks adopted the technology and displayed similar success, “the amount of scam payments prevented over a year would equate to almost £100 million saved across the UK”, Mastercard says.
“Banks have found these scams incredibly challenging to detect,” says 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.
“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.”
Mastercard says it is rolling out its Consumer Fraud Risk AI solution in the UK first due to its “deep experience” of tracing and stopping financial crime across the country’s real-time banking system, adding that it has also helped co-ordinate banks into sharing their fraud data.
The payments giant adds that it is currently “assessing” further international markets to scale the solution.
