Mastercard is leveraging its AI technology to assist various UK banks in predicting and preventing real-time payment scams. The company has rolled out its ‘Consumer Fraud Risk’ technology in the UK, utilizing extensive payment data to help identify potential scams before any funds are transferred from a victim’s account.
This innovative tool builds on Mastercard’s previous collaborations with UK banks, tracking the movement of money mule accounts over the past few years. By integrating this information with various analytical factors—such as account names, payment amounts, payer and payee history, and links to accounts known for scams—banks can gain the insights they need to intervene in real time and avert financial loss.
A total of nine lenders, including Lloyds, Halifax, Bank of Scotland, NatWest, Monzo, and TSB, are implementing this technology. TSB has reported a “dramatic increase” in fraud detection within just four months of utilizing the tool.
Paul Davis, director of fraud prevention at TSB, stated, “Our partnership with Mastercard is providing the intelligence needed to identify fraudulent accounts and prevent payments from reaching them.”
Mastercard emphasizes that this system could significantly address Authorised Push Payment (APP) fraud, which has surged in recent years and now represents 40% of bank fraud losses in the UK.
“Banks have found these scams incredibly challenging to detect,” noted 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. As we increasingly conduct our lives online, this type of fraud undermines victims’ confidence in digital interactions.”
Looking ahead, Mastercard is exploring opportunities to deploy this technology in other markets.