Mastercard today announced significant upgrades to its Consumer Fraud Risk solution, designed to bolster protection against Authorized Push Payment (APP) scams in the UK. By leveraging advanced AI technology, the solution provides banks with real-time insights into potentially fraudulent transactions, enabling them to proactively stop scams before they occur.
APP scams, which often involve deceptive tactics like fake websites or phishing emails, have resulted in substantial financial losses for UK consumers. In 2023 alone, APP fraud cost victims £460 million ($607 million).
To address this growing threat, Mastercard’s solution analyzes multiple data points associated with a transaction, assigning a risk score that helps banks identify suspicious activity. This proactive approach has already proven effective, with 11 UK banks using the solution to prevent numerous fraudulent payments.
With the upcoming implementation of new regulations by the UK’s Payment Systems Regulator (PSR), banks will be required to reimburse APP fraud victims, except in limited circumstances. Mastercard’s enhanced solution provides banks with an additional layer of protection against these scams and helps ensure compliance with the new regulations.
“Fraudsters are constantly evolving their tactics, and it’s essential for banks to stay ahead of the curve,” said Johan Gerber, Executive Vice President of Security Solutions at Mastercard. “Our enhanced Consumer Fraud Risk solution provides banks with the tools they need to identify and stop scams before they cause harm to consumers.”
The new solution includes additional AI enhancements that enable banks to detect mule accounts, which are often used by fraudsters to launder stolen funds. By identifying these accounts early, banks can take proactive measures to prevent fraud and protect their customers.
Mastercard plans to expand the availability of its Consumer Fraud Risk solution to global markets throughout the year, further strengthening its commitment to combating financial crime and protecting consumers worldwide.
