- Mastercard partners with Feedzai to enhance fraud protection using AI technology against rising scams targeting consumers and businesses.
- This collaboration aims to reduce financial losses, which exceeded $1 trillion last year, by deploying advanced fraud detection solutions globally.
What happened: Mastercard and Feedzai unite to tackle scams
Mastercard has announced a partnership with Feedzai, an AI-powered financial crime prevention provider, to enhance protections against scams targeting consumers and businesses. This collaboration aims to leverage Feedzai’s advanced fraud detection technology to help financial institutions identify and prevent scams in real time. With payments evolving, fraudsters increasingly employ AI techniques, resulting in substantial financial losses, estimated at over $1 trillion last year. The partnership will deploy Mastercard’s Consumer Fraud Risk (CFR) solution, which has already shown success in the UK by reducing authorised push payment scams by over 12%. This initiative reflects a proactive approach to combatting the growing threat of digital fraud.
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Why it’s important
This partnership is significant in the context of rising financial crime, particularly as scams become more sophisticated and prevalent. The collaboration between Mastercard and Feedzai highlights a crucial shift towards integrating AI technologies in fraud prevention strategies. As more consumers engage in digital transactions, the urgency to protect sensitive financial information intensifies. This partnership not only safeguards individual users but also strengthens the overall integrity of the financial system.
The scale of the problem cannot be underestimated; with over half of consumers experiencing scams weekly, the impact on public trust in digital payments is profound. Other fintech companies are also prioritising similar initiatives, recognising the need for robust security measures. As financial institutions adopt AI-driven solutions, they can respond more swiftly to emerging threats, ultimately fostering a safer transactional environment for all. This collaboration sets a precedent for future partnerships in the industry, encouraging more companies to innovate and invest in advanced security technologies. By addressing these challenges, Mastercard and Feedzai are paving the way for a more secure financial landscape, benefiting consumers and businesses alike.
