Mastercard is addressing the increasing risk of scams with the introduction of an AI-based product suite and various cross-industry collaborations.
According to the FBI, Americans lost $12.5 billion to internet scams in 2023. In the UK, nearly 1.4 million thefts were reported during the first half of the year, attributed to fraudsters.
To tackle this issue, Mastercard has rolled out Scam Protect, a set of specialized tools utilizing AI, biometrics, and open banking to help identify and prevent various scam types, including card-based scams, account-to-account fraud, and fraudulent account openings.
The company is partnering with Verizon to combine its identity insights with the telecommunications provider’s network technologies, which will enhance their ability to block spam and scams effectively. Kyle Malady, CEO of Verizon Business, stated, “Verizon and Mastercard share a commitment to helping protect consumers from security threats. By combining our expertise, we’re building solutions to identify and thwart scammers before they initiate contact.”
Additionally, banks in the UK, including NatWest, are among the first to implement Mastercard’s AI-driven Consumer Fraud Risk technology, which helps identify and prevent the transmission of funds to scammers in real-time.
Mastercard has also joined the Global Anti-Scam Alliance to share knowledge and coordinate efforts for promoting safe and secure transaction methods while safeguarding consumers.
Chris Reid, EVP of identity solutions at Mastercard, emphasized, “Building on our innovations in AI and key partnerships, we are supporting financial institutions with insights to better detect and prevent scams, while helping consumers learn how to spot them.”