PURCHASE, N.Y.—Mastercard has unveiled what is being described as a new approach to identify compromised payment cards, leveraging a combination of generative artificial intelligence and graph technology.
The company reports that this method has doubled its detection rate for compromised cards before they can be used fraudulently, PYMNTS reported.
“The new technique could have far-reaching implications for the broader commerce landscape. Online and brick-and-mortar retailers benefit from reduced fraud losses and increased transaction security,” PYMNTS stated. “The enhanced detection capabilities could lead to fewer declined transactions due to suspected fraud, potentially boosting sales and improving customer experience. For eCommerce platforms, where card-not-present fraud is a persistent challenge, Mastercard’s innovation could provide a much-needed layer of protection.”
In doing so, it alerts Mastercard to new, complex fraud patterns, PYMNTS said.
‘Significant Issue’
According to Juniper Research, online fraud remains a significant issue in the financial sector, with global losses from payment fraud estimated to reach $40.62 billion in 2027. Fraudsters employ various techniques to steal payment card numbers, including spyware, malware, and card skimming.
The stolen credentials are then resold on illegal websites, often with partially revealed card numbers, to attract potential buyers while avoiding complete identification, PYMNTS noted.