Mastercard has recently introduced a new method that leverages generative artificial intelligence and graph technology to identify stolen payment cards. The company claims that this new approach has doubled its detection rate for stolen cards, enabling the identification of potential risks before the cards are maliciously used.
The emergence of this technology could have profound implications for both online and brick-and-mortar retailers. Retailers can reduce fraud losses, enhance transaction security, and also decrease the instances of declining transactions due to suspected fraud, thereby improving customer experience.
Rohit Chauhan, Executive Vice President of AI Fraud Solutions at Mastercard, stated that the technology rapidly scans billions of cards and millions of merchants' transaction data to quickly identify new complex fraud patterns. He mentioned, "Using Mastercard's proprietary generative AI technology, we can infer the complete card information from partially visible card data sold online, allowing us to identify stolen cards faster and alert banks promptly to protect cardholders and prevent fraud."
According to relevant research, online fraud remains a significant issue for the financial industry, with global payment fraud losses expected to reach $40.62 billion by 2027. Fraudsters use various techniques to steal payment card numbers, such as spyware, malware, and card skimming devices, and then sell these stolen credentials on illegal websites.
Mastercard's new system utilizes generative AI, a technology that can learn from large datasets and create new content, combined with graph technology, to identify relationships and patterns among data points.
This combination helps Mastercard detect stolen cards before fraudulent transactions occur, saving millions of dollars in losses for banks and consumers. By analyzing recent reported fraudulent transactions, known or suspected stolen merchants, and other signals, Mastercard can quickly block the use of suspicious cards.
Key Takeaways:
💳 Mastercard's new technology uses generative AI and graph technology to double the detection capability of stolen cards.
🔒 The system can identify potential risks before the cards are abused, saving substantial losses for banks and consumers.
🚀 Mastercard responds rapidly to changes in fraud patterns by analyzing fraudulent transactions and merchant information, continuously strengthening security measures.