Mastercard and Feedzai partner: A new era in scam prevention

In an age where digital transactions are becoming the norm, the rise of financial scams has reached alarming levels. According to recent data, scam fraud exceeded a staggering US$1 trillion last year, affecting over half of the world’s population. This global epidemic has prompted leading financial institutions to seek innovative solutions to protect consumers and businesses alike.

Enter Mastercard and Feedzai, two industry giants who have joined forces to combat this growing threat with cutting-edge AI-powered technology. This partnership marks a significant milestone in the fight against financial scams, offering a comprehensive solution that could redefine scam prevention as we know it.

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The scale of the problem: Why scam prevention is more critical than ever

Financial scams are not just a nuisance; they are a global crisis. With more than 50% of consumers reporting that they encounter scams at least once a week, the need for effective scam prevention measures has never been more urgent.

Scammers are becoming increasingly sophisticated, leveraging advanced technologies like artificial intelligence (AI) to deceive victims. These scams range from phishing attacks and identity theft to authorised push payment (APP) fraud, where victims are tricked into sending money to fraudulent accounts.

The impact of these scams is devastating, not just for individuals but for entire economies. In fact, the $1 trillion lost to scams last year surpasses the GDP of many countries. This financial hemorrhage underscores the need for a robust, scalable solution that can protect consumers and businesses in real-time.

Mastercard and Feedzai: A powerhouse partnership

Mastercard, a global leader in payment technology, and Feedzai, a pioneer in AI-driven financial crime prevention, have teamed up to tackle this issue head-on. Their collaboration aims to expand the reach of Mastercard’s Consumer Fraud Risk (CFR) solution, an AI-powered technology that has already proven its effectiveness in the UK. Since its launch in 2023, CFR has reduced authorised push payment scams by over 12%, according to data from the UK’s Payment Systems Regulator (PSR).

The partnership leverages Feedzai’s global platform, which currently protects over a billion consumers and $8 trillion in transactions across 90 countries. By integrating Mastercard’s CFR solution with Feedzai’s advanced fraud detection capabilities, the two companies are set to expedite the deployment of this technology to key markets worldwide within the year.

How the combined solution works: Real-time scam prevention

The combined solution offered by Mastercard and Feedzai is designed to empower financial institutions with real-time intelligence to identify and prevent scams in account-to-account payments. The technology analyses multiple risk signals, leveraging device intelligence, network data, and behavioural biometrics to detect suspicious activity as it happens.

Here’s how it works:

Device intelligence: The system examines the device used for the transaction, checking for any anomalies or signs of compromise.
Network data: It analyses the network through which the transaction is being conducted, identifying any unusual patterns or red flags.
Behavioural biometrics: The technology monitors the user’s behaviour, such as typing speed and mouse movements, to detect any deviations from their normal patterns.

By integrating these data points, the AI-powered solution can identify and stop scams in real-time, preventing financial losses before they occur.

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The role of AI in scam prevention

Artificial intelligence is at the heart of this partnership. AI’s ability to process vast amounts of data in real-time makes it an invaluable tool in the fight against financial scams. Feedzai’s AI-native Financial Crime Prevention Platform analyses every digital transaction—from card purchases to real-time transfers—for multiple risk signals. This allows the system to identify and flag suspicious activity as it happens, enabling financial institutions to take immediate action.

Johan Gerber, Executive Vice President and Head of Security Solutions at Mastercard, emphasised the importance of AI in combating financial crime: “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. 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.”

The global impact: Protecting consumers and businesses worldwide

The partnership between Mastercard and Feedzai is not just a technological advancement; it’s a global initiative aimed at protecting consumers and businesses across the world. By expanding the reach of Mastercard’s CFR solution, the partnership will help financial institutions in over 90 countries combat financial crime more effectively.

Nuno Sebastiao, CEO of Feedzai, highlighted the urgency of this initiative: “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.”

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The future of scam prevention: A collaborative approach

The fight against financial scams requires a collaborative approach, and the partnership between Mastercard and Feedzai is a testament to that. By combining Mastercard’s global data expertise with Feedzai’s purpose-built risk scoring capabilities, the two companies are setting a new standard in scam prevention.

Julie Conroy, Chief Insights Officer at Datos Insights, emphasised the importance of third-party data in fraud defence: “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 defence. By building on Mastercard’s proven CFR score and extending it globally, this partnership delivers a powerful combination.”

A new dawn in scam prevention

The partnership between Mastercard and Feedzai represents a significant leap forward in the fight against financial scams. By leveraging AI-powered technology, the two companies are offering a real-time, scalable solution that can protect consumers and businesses worldwide. As financial scams continue to evolve, so too must our defenses. With Mastercard and Feedzai leading the charge, the future of scam prevention looks brighter than ever.

In a world where financial scams are becoming increasingly sophisticated, the need for advanced, real-time solutions has never been greater. The partnership between Mastercard and Feedzai is a beacon of hope, offering a comprehensive, AI-powered solution that could redefine scam prevention for years to come. As we move forward, it’s clear that collaboration and innovation will be key to staying one step ahead of the scammers.

For more information on how Mastercard and Feedzai are revolutionising scam prevention, visit Mastercard and Feedzai.

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