Overall fraud rates in North America in 2023 increased by 70 per cent, according to a recent Featurespace report. As fraud continues to rise across the globe, many are left scratching their heads when considering how best to approach consumer protections.
In an effort to fight back against fraudsters, payments giant Mastercard is now adopting generative AI techniques to enhance the protections that keep consumers, and the entire payments network, safe.
Mastercard’s Decision Intelligence (DI), a real-time decisioning solution, already helps banks score and safely approve 143 billion transactions a year. New generative AI technology will scan an unprecedented one trillion data points to predict whether a transaction is likely to be genuine or not, building Mastercard’s existing ability to analyse account, purchase, merchant and device information in real time.
The next-generation technology, ‘Decision Intelligence Pro’, works by assessing the relationships between multiple entities surrounding a transaction to determine its risk. In less than 50 milliseconds, this technology improves the overall DI score, sharpening the data provided to banks.
Mastercard explained that initial modelling shows AI enhancements boost fraud detection rates on average by 20 per cent and as high as 300 per cent in some instances.
‘Instilling trust into every interaction’
Ajay Bhalla, president of cyber and intelligence at Mastercard, commented on the use of AI to tackle fraud: “With generative AI we are transforming the speed and accuracy of our anti-fraud solutions, deflecting the efforts of criminals, and protecting banks and their customers. Supercharging our algorithm will improve our ability to anticipate the next potential fraudulent event, instilling trust into every interaction.
“The precision of the solution – achieved by scanning potential points of sale in real-time – has been shown in our own analysis to not only increase accuracy but also reduce the number of false positives by more than 85 per cent.”
The enhancement of DI looks to improve banks’ abilities to protect cardholders from fraudulent transactions and mitigate false positives: legitimate transactions which are incorrectly flagged as fraudulent ones.