Mastercard has presented a new approach to identifying compromised payment cards, which involves using a combination of generative artificial intelligence and graph technology.
The payment industry giant expects that the new methodology will double the rate of detection of compromised cards before they can be used for fraudulent purposes. The company also claims that the new approach could have long-term implications for the broader commerce landscape. Moreover, Mastercard expects online and brick-and-mortar retailers to be the beneficiaries of reduced fraud-related losses and increased transaction security.
Enhanced detection capabilities have the potential to cut the number of financial transactions rejected due to suspected fraud, potentially boosting sales and improving the customer experience.
Mastercard’s innovative solutions can provide the much-needed layer of protection for e-commerce platforms where card-not-present fraud schemes are an ongoing problem.
Rohit Chauhan, EVP of AI-Fraud Solutions at Mastercard, says the new technology functions by scanning transaction data across billions of cards and millions of merchants at a faster rate than could have been imagined in the past. He says the company’s use of generative artificial intelligence techniques allows it to extrapolate the full card credentials from those partially visible and being sold online. Rohit Chauhan says that the mentioned possibility in the framework of its practical realization means doubling the rate at which the firm can spot compromised cards and alert banks. Also, in this case, the protection of cardholders and the prevention of fraud even before it takes place.
As we have reported earlier, Visa Says About Effectiveness of AI in Combating Fraud.
