Mastercard launches AI to block financial fraud in real time

Mastercard said it has launched the first consumer fraud risk assessment solution in the UK. This is because Mastercard's AI system has gained experience from a large historical dataset of UK horse accounts from participating banks. As a result, the system has developed to the point where it can successfully detect and stop financial crimes in the payment system in real time. We will continue to cooperate with banks to share information on fraudulent transactions. Mastercard is ready to make this technology available to new markets where it suits them.

Over the past few years we have seen all kinds of fraud. Whether it is Romance scams or creating a fake identity to deceive victims through online channels. Falsifying your identity or impersonating your name for these fraudulent activities All of which cause distress to many people and businesses. It also shakes confidence in the financial security system. This issue will be addressed by Mastercard with its recently announced Consumer Fraud Risk Assessment solution. Currently used in England

While data from the Bank of Thailand in 2564 indicates financial theft statistics that come from gang call centers 6.4 million times, an increase of 270% from 2563 and fraudulent SMS increasing from 2563 to 57%. More than 21% of Thai people have experienced call center fraud calls.

From the number of numbers predicted from this It can be seen that the number is very high. and is a matter of concern in society Because in just a fraction of a second we make the wrong decision. The damage caused will be enormous. Some people may even lose all their money. If it is a company or organization, it may damage both property and reputation. the confidence to have

with awareness of this problem and a commitment to deliver solutions that solve these problems. Mastercard has developed the latest version of its AI (Artificial Intelligence) capabilities to be able to verify transaction data on an account-by-account basis. The account-to-account system helps banks to anticipate and prevent all forms of scammers from scammers. It uses large-scale financial transaction data to help detect and block scammers' transactions in real-time before victims' funds are stolen.

There are currently nine UK banks participating in the system, including Lloyds Bank, Halifax, Bank of Scotland, NatWest, Monzo and TSB.

This is because these scammers will transfer fraudulently obtained funds to a “horse account” to conceal the money and prevent detection. Made it for the past five years. Mastercard has been working with nine banks to find a solution. By tracking the movement of money all the way to suspicious destination accounts and closing these accounts. And with these money tracking information That allows MasterCard's system to rate the risk of each transaction. By analyzing many factors such as account name and amount transferred. Transaction history of the sender and recipient and the probability of the beneficiary's account being involved in theft. This works in detail and is the AI ​​system of Mastercard. This has enabled banks to halt suspicious transactions in real time before victims' funds are lost.

One of the banks participating in Mastercard's Consumer Fraud Risk system is TSB, which has seen excellent results using the solution. As a result of just four months of using the system, TSB has detected a significantly higher number of fraudulent transactions. And Mastercard estimates that if other banks using the solution are able to detect and intercept transfers as efficiently as TSB, banks across the UK will be able to block almost £100 million worth of stolen funds within 1 hours. It only takes one year. Moreover, by 2023, other banks will join in using the system to join in blocking the work of criminals. And MasterCard has plans to expand this service to other countries in the future as well.

At present, the security of banking and payment transactions has made great progress. The scammers had to adjust their identity disguise mechanisms to be more ingenious. They turn the target of theft into convincing individuals and businesses to transfer money to them. by deceiving it into believing that it is a money transfer to a real person or institution whether friends known partners Including the purchase of counterfeit virtual goods through online channels also known as Authorized push payment fraud (APP Fraud) with losses resulting from this type of scam making up 40% of UK transactions. or a total value of approximately 4.6 billion US dollars in the United States and England by the year 2026 only

“Banks find this type of theft very difficult to investigate,” said Ajay Bhalla, President of Cyber ​​and Intelligence, Mastercard, “because these victims pass the bank's risk assessment criteria. and also transfer their money themselves. There is no need for fraudsters to violate any security measures. Nowadays, we live in a digital society more and more every day. But these types of frauds also undermine victims' trust in online transactions. Therefore, we aim to build and maintain their trust. Using the latest version of AI technology To help banks classify and detect suspicious spending. and can prevent theft in a timely manner.”

Mastercard has been using this AI system for the past decade. And nowadays, this intelligent system has become a basic technology that can be applied to a variety of businesses. And it is a turning point that helps identify patterns of fraud. by Mastercard's AI-powered security process It has helped stop more than $3.5 billion in losses over the past 3 years.

“Theft has become much more sophisticated. Makes the detection of financial theft And separate it from legitimate financial transactions that occur millions of times every day. Poverty is like finding a needle in a haystack. Therefore, prevention and detection tools are now key,” said Paul Davis, Director of Fraud Prevention, TSB Bank. “Our partnership with Mastercard It supports the information needed to detect horse accounts and prevent fraudulent transactions from scammers. To prevent the theft from being successful.”

Preliminary results from banks that have implemented Consumer Fraud Risk solutions in their risk assessments. This is especially true when using this solution in conjunction with customer insights and their financial behavior. Very successful in preventing theft because of the use of the above information This allows the system to detect and classify patterns of theft. Especially the theft that tricks the victim into making a payment. Money transfers to fake businesses or individuals This includes romance scams. Currently, payment scams account for 57% of all scams in the UK. And it's also a huge loophole in the country1

In 2022, there were a total of 207,372 transactions involving scammers in the UK, with estimated losses at €485 million.