Mastercard introduced an AI solution for detecting fraudulent transactions
Mastercard has launched a Consumer Fraud Risk (CFR) system that analyzes banking transactions in real time and identifies fraudulent ones. The company is starting to launch the technology in the UK.
UK banks, including Lloyds Bank, Halifax, Bank of Scotland, NatWest, Monzo and TSB, have partnered with Mastercard to implement the CFR AI system to prevent fraudulent transactions. The solution monitors strange user behavior and warns of suspicious activity before funds are transferred to malicious accounts.
TSB took part in CFR testing and used the system for four months. TSB representatives noted that the UK will be able to reduce the volume of fraudulent transactions by 100 million pounds if all banks start using Mastercard's AI system.
Mastercard, in turn, said that other UK banks will switch to using CFR before the end of 2023. Now the company is working on scaling the technology for use around the world. Also on the company's blog, they said that the system is designed for cases where the user independently transfers funds to the accounts of scammers.
