Scammers are getting smarter, and so are we. In a world where fraudsters are leveraging the latest in AI to deceive consumers, the need for advanced security measures has never been greater. According to a recent report by Feedzai and the Global Anti-Scam Alliance, scammers stole over $1 trillion last year, with more than 50% of consumers encountering scams at least once a week. To tackle this growing threat, Mastercard has partnered with Feedzai, a leading artificial intelligence company, to deploy cutting-edge solutions that protect consumers and financial institutions alike.
The collaboration between Mastercard and Feedzai highlights the transformative power of AI in banking and financial services. Feedzai’s AI-native Financial Crime Prevention Platform is a game-changer, analyzing every digital transaction—from card purchases to real-time transfers—in real time. This platform detects multiple risk signals, enabling financial institutions to spot and prevent scams before they cause harm.
Mastercard’s Consumer Fraud Risk (CFR) solution, powered by Feedzai’s technology, is already making waves. Since its launch in the UK in 2023, the value of authorised push payment (APP) scams has dropped by over 12%. This success story underscores the potential of artificial intelligence in financial services to combat fraud effectively.
Fraudsters are increasingly using sophisticated tactics, but artificial intelligence systems are fighting back. Feedzai’s platform, used by leading financial institutions worldwide, protects over a billion consumers and processes upwards of $8 trillion in transactions annually. By analysing vast amounts of transaction data in real time, these systems identify anomalies and patterns that human analysts might miss.
“With more than half the world’s population affected, the scale of scam fraud is not only devastating consumers but also surpassing the GDP of many individual economies. Together with Feedzai’s global platform, we will scale our first-of-its-kind scams solution to more markets, helping financial institutions combat financial crime faster than ever before.”
— Johan Gerber, Executive Vice President and Head of Security Solutions at Mastercard
Scams have become the leading form of fraud, surpassing even digital payment fraud. According to PYMNTS Intelligence, scam-related fraud rose by 56% last year, with financial losses increasing by 121%. Relationship/trust scams and product/service scams are the most prevalent, accounting for 23% of all fraudulent transactions.
These scams often manipulate individuals into authorizing fraudulent transactions or tricking them into revealing sensitive account details. The rise of artificial intelligence in banking and finance is proving to be a critical defense mechanism. By leveraging AI for banking and finance, institutions can detect and prevent fraudulent activities in real time, safeguarding both consumers and their assets.
The partnership between Mastercard and Feedzai is a testament to the growing importance of artificial intelligence security in the financial sector. As fraudsters continue to evolve, so must our defenses. With 71% of financial institutions now using AI and machine learning for fraud detection—up from 66% in 2023—the industry is clearly embracing these technologies to stay ahead of the curve.
For those wondering what is artificial intelligence and how it can help, this collaboration is a prime example. By combining Mastercard’s global reach with Feedzai’s advanced artificial intelligence systems, the two companies are setting a new standard for financial security.
The latest research on artificial intelligence confirms its critical role in combating financial crime. As scams become more sophisticated, the need for artificial intelligence in financial services will only grow. Mastercard and Feedzai’s partnership is a bold step forward, demonstrating how AI for banking and finance can protect consumers and institutions alike.
Stay tuned for the latest updates on artificial intelligence and its impact on the financial world. With innovations like these, the future of financial security looks brighter than ever.
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