Mastercard has recently integrated generative AI technology into its fraud detection system to enhance security measures against credit and debit card fraud.
Description
Led by Johan Gerber [4], this new technology analyzes transaction data from billions of cards and millions of merchants to predict full card details of compromised cards on its network [6], enabling banks to block them faster [1]. By using generative AI [1] [2] [4] [5] [8], Mastercard can swiftly identify at-risk cardholders and replace compromised cards proactively [4], doubling the rate of detection and reducing false positives by up to 200%. This technology also increases the speed of identifying merchants at risk of fraud by 300% and detects new and complex fraud patterns, surpassing human capabilities in detecting fraud and safeguarding customers’ financial information [10]. Mastercard’s innovative reverse pattern recognition capabilities enable the identification of potential points of compromise [4], such as compromised merchants or payment processors [4] [10], based on observed patterns in batches of compromised cards [4]. This advanced technology is crucial in protecting customer data from hackers using AI technology to create convincing scams [8], instilling trust in the digital ecosystem and enabling banks to replace compromised cards before they fall into the hands of cybercriminals. Mastercard’s implementation of generative AI technology builds on its existing suite of security solutions, such as Cyber Secure [9], which provides transparent cybersecurity information on bank and merchant profiles [9], including details of suspected compromised cards [9]. This proactive approach not only protects individual cardholders but also strengthens the overall security of the financial ecosystem [4], offering real-time protection and minimizing disruption for affected cardholders [4]. Mastercard aims to quickly identify patterns in stolen cards and replace them before they can be used by criminals [2], utilizing generative AI to pinpoint how and where credentials were compromised and promptly address the issue for affected customers [2], providing new cards to consumers swiftly to minimize disruptions to their daily lives [2]. By analyzing patterns and contextual information [3] [7], such as geography and time [3] [7], Mastercard can reach cardholders sooner to replace compromised cards and potentially identify compromised merchants or payment processors [3] [7].
Conclusion
The integration of generative AI technology into Mastercard’s fraud detection system has significantly enhanced security measures against credit and debit card fraud, doubling the rate of detection and reducing false positives [8]. This advanced technology not only protects customer data from hackers but also strengthens the overall security of the financial ecosystem. Moving forward, Mastercard’s proactive approach to identifying and replacing compromised cards before they fall into the hands of cybercriminals will continue to instill trust in the digital ecosystem and safeguard customers’ financial information.
References
[1] https://ffnews.com/newsarticle/paytech/mastercard-accelerates-card-fraud-detection-with-generative-ai-technology/
[2] https://thenota.com/post/2024/may/22/mastercard-ai-fraud-detection-protection/
[3] https://www.necn.com/news/national-international/mastercard-to-use-generative-artificial-intelligence-to-stop-credit-card-fraud/3241444/
[4] https://theubj.com/world/mastercard-utilizes-ai-to-swiftly-identify-compromised-cards-preventing-criminal-usage/
[5] https://www.pymnts.com/fraud-prevention/2024/mastercard-uses-ai-to-solve-jigsaw-of-credit-card-fraud/
[6] https://www.infosecurity-magazine.com/news/mastercard-fraud-detection/
[7] https://www.mirror.co.uk/money/mastercard-use-ai-detect-credit-32865359
[8] https://tech.co/news/mastercard-ai-credit-card-fraud
[9] https://fintechnews.sg/96238/ai/mastercard-deploys-generative-ai-to-enhance-compromised-card-detection/
[10] https://fortune.com/2024/05/22/mastercard-new-ai-software-find-compromised-credit-debit-cards-quicker-criminals/
