Mastercard has unveiled its latest initiative to combat fraud in the financial sector, introducing generative AI (GenAI) technology. The company aims to leverage this innovative technology to assist banks in enhancing their fraud detection capabilities. The key feature of GenAI is its ability to analyze an extensive one trillion data points, providing a comprehensive evaluation to predict the authenticity of transactions.
Mastercard’s decision intelligence (DI) technology, already in use, approves approximately 125 billion transactions annually in a secure manner. GenAI takes this a step further by assessing the relationships between various entities involved in a transaction, allowing it to determine potential risks associated with each transaction. The entire process is completed in less than 50 milliseconds, leading to a notable improvement in the overall DI score.
According to Mastercard, the introduction of GenAI has demonstrated significant enhancements in fraud detection rates. On average, there is a 20% increase, and in some instances, the improvement is as high as 300%. This heightened level of accuracy is attributed to the technology’s swift analysis of transaction-related entities, effectively sharpening the data provided to banks.
Ajay Bhalla, President of Cyber and Intelligence at Mastercard, emphasized the transformative impact of generative AI on the speed and accuracy of anti-fraud solutions. The primary goal is to thwart the efforts of criminals while instilling trust in every transaction for both banks and their customers. Bhalla highlighted the significance of supercharging their algorithm to better anticipate potential fraudulent events, contributing to a more secure financial ecosystem.
Furthermore, Mastercard stressed that the deployment of GenAI would play a crucial role in mitigating false positives. False positives refer to legitimate transactions that are inaccurately flagged as fraudulent. The company’s analysis indicates that the precision achieved by the solution, scanning potential points of sale in real-time, can reduce the number of false positives by more than 85%.
In summary, Mastercard’s introduction of generative AI technology represents a significant step forward in the ongoing battle against fraud in the financial sector. By harnessing the power of advanced analytics and rapid decision-making, the company aims to not only enhance fraud detection rates but also minimize the occurrence of false positives, ultimately fostering increased trust in financial transactions.
