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Mastercard AI tool helps UK banks take on real-time payment scams

Mastercard AI tool helps UK banks take on real-time payment scams

Mastercard is tapping into its AI capabilities to help a host of UK banks predict and prevent real-time payment scams.

The payments giant has launched its 'Consumer Fraud Risk' technology in the country, using large-scale payments data to help identify scams before funds leave a victim’s account. 

The tool builds on insights from Mastercard's work with UK banks to follow the flow of money mule accounts over the last few years. Overlaying this information with specific analysis factors - such as account names, payment values, payer and payee history, and the payee’s links to accounts associated with scams - helps provides banks with the intelligence necessary to intervene in real time and stop a payment before funds are lost. 

Lloyds, Halifax, Bank of Scotland, NatWest, Monzo and TSB are among the nine lenders tapping into the technology. In four months of using the tool, TSB has "dramatically increased" its fraud detection.

Paul Davis, director, fraud prevention, TSB, says: “Our partnership with Mastercard is providing the intelligence needed to identify fraudulent accounts and prevent payments ever reaching them.” 

Mastercard says that the system could have a significant impact on APP fraud, which has been rapidly rising in recent years and now accounts for 40% of UK bank fraud losses.

“Banks have found these scams incredibly challenging to detect.” says Ajay Bhalla, president, cyber and intelligence, Mastercard. “Their customers pass all the required checks and send the money themselves; criminals haven’t needed to break any security measures. As we all live more digital lives this type of fraud erodes victims’ confidence to interact online."

Mastercard is now looking at other markets where it can introduce the technology.

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