As payments continue to evolve, fraudsters are increasingly using AI to scam consumers. This cost more than $1 trillion[1] last year, with more than 50% of consumers saying they had encountered a scam at least once a week[2].
Mastercard and Feedzai, an AI solution provider in financial crime prevention, announced they are joining forces to make it easier for more banks to identify and stop scams, protecting consumers and businesses globally.
Leveraging the global availability of Feedzai’s advanced fraud platform, which currently helps protect consumers and financial institutions in over 90 countries, the companies will expedite the deployment of Mastercard’s Consumer Fraud Risk (CFR) solution to customers across many key markets globally.
In account-to-account payments, CFR provides both the sending and the receiving financial institution with intelligence to help detect and prevent scams in real time. Since it went live in the UK in 2023, data from the country’s Payment Systems Regulator (PSR) shows that the value of authorized push payment (APP) scams has reduced by over 12%[3].
„With more than half the world’s population affected, the scale of scam fraud is not only having a devastating impact on consumers, but also surpassing the GDP of many individual economies” said Johan Gerber, executive vice president, head of Security Solutions at Mastercard. „Together with Feedzai’s global platform we will scale our first-of-its-kind scams solution to more markets, helping more financial institutions combat financial crime faster than before.”
Leading financial institutions already use Feedzai’s AI-native Financial Crime Prevention Platform to protect over a billion consumers globally, and more than $8 trillion in transactions every year.
“We are excited to expand our partnership with Mastercard to address escalating financial crime threats,” said Nuno Sebastiao, CEO of Feedzai. “The exponential growth in scams underscores the urgency for financial institutions to adopt AI-based, real-time solutions. We’re excited to be working together with Mastercard to help bring the proven value of its CFR score to new markets for the first time.”
Feedzai’s platform analyzes every digital transaction—from card purchases to real-time transfers—for multiple risk signals in real time. By integrating device intelligence, network data, and behavioral biometrics, Feedzai AI identifies suspicious activity as it’s happening so fraud can be stopped in real time before any money is lost.
„The global epidemic of fraud and scams has created a pressing need for innovative technology solutions. In the face of this rapidly rising threat, financial institutions should consider third party data as an essential part of their strategy for fraud defense,” said Julie Conroy, Chief Insights Officer, Datos Insights. „By building on Mastercard’s proven CFR score and extending it globally, this partnership delivers a powerful combination – Mastercard’s global data expertise and Feedzai’s purpose-built risk scoring capabilities.„
[1] https://www.gasa.org/post/global-state-of-scams-report-2024-1-trillion-stolen-in-12-months-gasa-feedzai
[2] Global State of Scams Report 2024
[3] UK Payment Systems Regulator: APP scams performance report (July 2024)
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
