Mastercard Revolutionizes Consumer Protection with Generative AI Technology

Mastercard announced the integration of generative AI into its Decision Intelligence (DI) platform to combat the rising tide of financial fraud. This enhancement is set to redefine the consumer protection landscape within the payments network, leveraging advanced technology to outpace fraudsters increasingly using sophisticated methods to undermine bank security and customer safety.

Mastercard’s DI, a pioneering real-time decisioning solution, currently facilitates the secure approval of 143 billion transactions annually. With the introduction of generative AI, the system’s capabilities are poised for a monumental leap forward. The new technology aims to scrutinize an astounding one trillion data points to discern the legitimacy of a transaction. This marks a significant advancement in Mastercard’s existing framework, which analyzes account details, purchase data, merchant information, and device identifiers in real time to ensure transaction integrity.

The forthcoming version, dubbed Decision Intelligence Pro, promises to elevate the fraud detection process to new heights. By examining the intricate web of relationships between various entities involved in a transaction, DI Pro can ascertain the risk level of a transaction in under 50 milliseconds. This rapid assessment not only enhances the overall DI score provided to banks but also, according to initial models, amplifies fraud detection rates by an average of 20%—and in certain scenarios, by as much as 300%.

Ajay Bhalla, president of Cyber and Intelligence at Mastercard, emphasized the transformative potential of generative AI, stating, “With generative AI we are transforming the speed and accuracy of our anti-fraud solutions, deflecting the efforts of criminals, and protecting banks and their customers. Supercharging our algorithm will improve our ability to anticipate the next potential fraudulent event, instilling trust into every interaction.”

One of the critical challenges in digital transaction security is the issue of false positives—legitimate transactions erroneously flagged as fraudulent. The enhancement of DI with AI is expected to significantly mitigate this issue. Bhalla highlighted the solution’s precision, achieved by scanning potential points of sale in real-time, which “has been shown in our own analysis to not only increase accuracy but also reduce the number of false positives by more than 85%.”

The roll-out of DI Pro is slated for later this year, signaling a significant step forward in the fight against financial fraud. For small business owners, this development holds particular relevance. The heightened accuracy and efficiency of Mastercard’s enhanced DI system mean improved transaction safety for both merchants and consumers. Small businesses, often more vulnerable to the repercussions of fraudulent transactions and false positives, can look forward to a more secure, trustworthy payment environment. This advancement not only promises to safeguard revenues but also to bolster consumer confidence—a critical component in the sustainability and growth of small enterprises in an increasingly digital marketplace.

As Mastercard gears up to deploy this cutting-edge technology, the implications for the payments industry and beyond are profound. In an era where digital transactions are ubiquitous, ensuring their security is paramount. Mastercard’s initiative represents a significant stride in building a safer, more reliable future for consumers and businesses alike, reinforcing the company’s position at the forefront of payment security innovation.

Image: Mastercard

Joshua Sophy Joshua Sophy is the Editor for Small Business Trends and has been a member of the team for 16 years. A professional journalist with 20 years of experience in traditional media and online media, he attended Waynesburg University and is a member of the Society of Professional Journalists. He has held roles of reporter, editor and publisher, having founded his own local newspaper, the Pottsville Free Press.