Feedzai, an AI solution provider in financial crime prevention, is teaming up with payments giant Mastercard, to make it easier for more banks to identify and stop scams, protecting consumers and businesses globally.
By leveraging the global availability of the Feedzai fraud platform, which currently helps protect consumers and financial institutions in over 90 countries, Mastercard hopes to expedite the deployment of its Consumer Fraud Risk (CFR) solution to customers globally.
As payments continue to evolve, fraudsters are increasingly using AI to scam consumers. These techniques cost more than $1trillion last year, with over 50 per cent of consumers having encountered a scam at least once a week.
Recognising this growing challenge, Mastercard is continuing to invest in emerging technology and strengthening partnerships to help prevent scams at each stage of the lifecycle – from account opening to the each transaction being made.
“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.”
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 authorised push payment (APP) scams has reduced by over 12 per cent.
Fighting fraud with AI
Leading financial institutions already use Feedzai’s AI-native Financial Crime Prevention Platform to protect over a billion consumers globally, and more than $8trillion 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 analyses digital transactions, from card purchases to real-time transfers, for multiple risk signals in real-time. By integrating device intelligence, network data, and behavioural 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 defence,” said Julie Conroy, chief insights officer at 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.”
