Credit Card Companies On Fraud Alert

Mastercard launched a new, issuer-focused fraud prevention solution. They’ve called it the Early Detection System.

The system leverages “network insights, predictive capabilities, and both internal and external data sources.” It will determine if a card account is at risk of fraud, and then quantify that risk to the issuer. This will allow them to take action quickly to protect consumers and mitigate fraud losses.

The move follows several other AI-related fraud protection efforts by Mastercard. It could indicate a push on the company’s part to offer a full-suite solution. Credit card issuers, merchants, and consumers are all on high alert after a new wave of credit card fraud, including high-profile breaches.

One of these events occurred when the credit reporting agency, Equifax was breached from mid-May to July, 2017. The hackers accessed people’s names, Social Security numbers, birth dates, addresses and, in some instances, driver’s license numbers.

It is estimated that around 40% of online and 14% of in-store monthly transactions contain a fraud attempt. Additionally, 15.4 million customers in the U.S. alone were victims of identity fraud last year. Mastercard claims that its Early Detection System is attractive to clients because it is fast and potentially deters credit card fraud from happening. Additionally, it is multilayered and uses various forms of technology and data sources to provide the most comprehensive analysis of a card’s risk for hackers.

By quantifying the risk, it allows the system to take the most beneficial precautions.