[SOURCE- DailyAI]
Mastercard, a global leader in payment solutions, has taken a significant step forward in combatting fraudulent transactions within its extensive banking network. In an exclusive interview with CNBC, Mastercard announced the launch of its cutting-edge artificial intelligence model, Decision Intelligence Pro. This proprietary AI solution marks a groundbreaking advancement in fraud detection capabilities, promising to reshape security measures for thousands of banks connected to Mastercard’s network worldwide.
Mastercard’s Advanced AI Model:
Ajay Bhalla, President of Mastercard’s cyber and intelligence business unit, provided insights into the development of Decision Intelligence Pro. This innovative AI model is built upon a proprietary recurrent neural network, meticulously crafted by Mastercard’s cybersecurity and anti-fraud teams. By leveraging transformer models, the AI is empowered to analyze vast streams of transaction data in real-time, effectively distinguishing between legitimate and suspicious activities. While integrating open-source components as necessary, the majority of the technology is developed in-house, drawing from Mastercard’s extensive ecosystem data.
Enhanced Fraud Detection Mechanism:
Unlike traditional methods reliant on textual inputs, Mastercard’s algorithm takes a unique approach by utilizing a cardholder’s merchant interactions history as the primary assessment criterion. By mapping relationships between merchants and predicting fraudulent patterns, the AI swiftly generates accurate risk scores within an impressive 50 milliseconds.
Bhalla emphasized the significant improvements in fraud detection rates achieved through this cutting-edge technology, with potential savings of up to 20% for financial institutions. Mastercard’s ongoing investments exceeding $7 billion in cybersecurity and AI further underscore its dedication to combating evolving threats in the digital landscape.
Anticipated Impact and Industry Response:
Mastercard foresees its AI algorithm not only optimizing fraud detection but also predicting future fraud trends with insights gleaned from global transaction data. This proactive approach enables Mastercard to stay ahead of emerging threats across its expansive ecosystem. Bhalla highlighted the transformative potential of Decision Intelligence Pro in reshaping banking security paradigms, emphasizing Mastercard’s commitment to fortifying its network against evolving fraud threats. Meanwhile, industry players such as PayPal are also embracing AI innovations to enhance their offerings, signaling a broader trend toward AI-driven transformations in the payments landscape.
In summary, Mastercard’s unveiling of Decision Intelligence Pro marks a significant milestone in bolstering banking security and fostering trust in digital transactions. By harnessing the power of AI, Mastercard aims to lead the charge in combating fraudulent activities, setting a new standard for reliability and security in the global payments ecosystem.
