MasterCard Injects Real-Time Fraud Tool with More Data
Expert Monitoring Fraud Scoring for Merchants from MasterCard is the online merchants newest weapon in fighting fraud. The name may be a mouthful, but the technology is cutting edge: detection models designed specifically for eCommerce merchants to detect fraudulent transactions as soon as they happen.
The tool (let’s shorten it for this piece) one-ups existing detection methods by extending the length of the transaction history used to sniff out crooks. Then, in real time, EMFS computes a predictive fraud score to flag particularly suspicious Card-Not-Present transactions.
Moving parts aside, the bottom line is compelling: MasterCard says EMFS could reduce merchant fraud losses by between 15 and 30 percent.
“Our new tool allows acquirers and their participating merchants to look at the potential for fraud in a transaction in real time, and integrate the data into any existing fraud detection solution,” explains Johan Gerber, Group Head, Global Network Products for MasterCard Worldwide in a release. “This helps increase accuracy in fraud detection, and helps to reduce the bottom-line impact of fraud.”
That same release puts a rough estimate on the scale of fraud costs for merchants, attributing $102 billion in total losses to nefarious purchase activity in 2011.
EMFS will be made available to acquirers and merchants across the globe, in May but will be limited to the evaluation of transactions originating from U.S.-issued cards only.