Mastercard Ramps Up AI-Driven Offensive Against Scams

A chain is only as strong as its weakest link. The bigger the chain, the more important its security becomes.

The adage has taken a new meaning in 21st-century payments innovation, where forward-thinking financial players are leaning into advanced cybersecurity measures to protect consumers and drive financial inclusion.

Collaborations that enhance security and accessibility are likely to set new industry standards, particularly within security-critical areas like digital transactions.

“The world is expanding so rapidly from a digital point of view,” Johan Gerber, executive vice president and head of security solutions at Mastercard, told PYMNTS. “There is this massive opportunity in the digitization of economies and what that could mean for financial inclusion by bringing more and more people into the digital economy.”

“But we can only do so if we make sure your first interaction on a digital platform is not one where you get abused or scammed,” Gerber added. “That first experience can’t be a bad one. It has to be good and secure.”

Cybercriminals often target vulnerable users who may not be digitally literate, and for financial inclusion to be successful, trust is critical. Financial institutions are responding by investing heavily in cybersecurity technologies, with artificial intelligence-driven solutions gaining traction for their predictive and adaptive capabilities.

Financial Inclusion Requires Cybersecurity

As digital financial services become increasingly prevalent, from mobile banking to digital wallets, ensuring the security and integrity of these systems is paramount. As payments continue to evolve, so too will threats.

This drive for inclusion is at the heart of Mastercard’s mission to bring 1 billion people into the digital economy, Gerber said, adding that Mastercard’s partnership with Feedzai, announced Feb. 18, introduces AI-driven, real-time analytics into the equation and allows for immediate action when consumers make transactions, offering an added layer of protection against scams.

“We have intelligence from our network,” he said. “This is a huge amount of data of all the known frauds. We work with banks to understand fraud patterns, see the transactions.”

One of the unique advantages of the Feedzai partnership is the ability to connect the dots between different financial institutions, Gerber said. Traditional fraud detection systems often operate in isolation, limiting their effectiveness when transactions occur across multiple banks.

“If I combine my broad network view with your deep customer view, we can be way more intelligent,” he said. “And now we can provide decisions not just to the bank who’s sending money, but also the bank who’s receiving money.”

The Future of Fraud Defense Is Global and Collective

For consumers, the promise of safer transactions and increased access to financial services marks a step forward, Gerber said. For Mastercard and Feedzai, the partnership represents an opportunity to drive innovation while contributing to a more inclusive financial ecosystem.

This holistic approach is particularly critical as fraud tactics vary by geography. In the United Kingdom, authorized push payment (APP) fraud is an issue, while in Southeast Asia, SMS phishing scams are more prevalent. Feedzai’s localized implementation model enables Mastercard to tailor its cybersecurity strategies to regional threats, enhancing their effectiveness.

“Fraud scams specifically, we talk about it being a $1 trillion problem,” Gerber said.

A standout aspect of the partnership is its potential to address emerging threats like deepfakes and AI-driven scams. As cybercriminals use technology to create more sophisticated scams, Mastercard aims to stay ahead by integrating innovative solutions into its platform, he said.

“What we want to do with this platform is start inviting players to come talk to us,” Gerber said. “If you’ve got a really good solution to help fight deepfakes, we want to build that intelligence into the platform and make it accessible.”

The partnership also reflects a broader shift toward a multilayered approach to combating fraud. By collaborating with social media platforms, telco providers and other industry players, Mastercard is building a resilient ecosystem capable of responding to a wide array of threats, he said.

“This is going to be multiple layers of things over time,” Gerber said. “But creating these infrastructure plays where everybody can benefit, I think it’s helping to create real scale alongside so many other different players who are all focused on solving this problem.”

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