Mastercard and Feedzai, a risk management platform based in Portugal, have announced a partnership aimed at helping banks detect and prevent scams more effectively, safeguarding both consumers and businesses globally.
Fraud has become a significant issue, with scams costing over US$1 trillion last year and more than half of consumers encountering a scam at least once a week.
To address this, Mastercard is enhancing its Consumer Fraud Risk (CFR) solution, which helps financial institutions detect and prevent scams in real-time, from account opening to the transaction point.
The solution is powered by Feedzai’s advanced AI platform, which already helps protect financial institutions in over 90 countries.
Since its introduction in the UK in 2023, the CFR solution has contributed to a 12% reduction in authorised push payment (APP) scams, according to the country’s Payment Systems Regulator.
Johan Gerber, Executive Vice President of Security Solutions at Mastercard, highlighted the global scale of the issue, saying,
“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.”
He added that the partnership with Feedzai will allow them to scale their solution to more markets, helping institutions fight financial crime more efficiently.
Feedzai’s platform already protects over a billion consumers and processes more than $8 trillion in transactions annually.
Nuno Sebastiao, CEO of Feedzai, stressed the importance of adopting AI-based, real-time solutions to address the rise in scams.
“The exponential growth in scams underscores the urgency for financial institutions to adopt AI-based, real-time solutions,”
he said.
Feedzai’s platform monitors every digital transaction – whether card purchases or real-time transfers – by analysing multiple risk signals, integrating device intelligence, network data, and behavioural biometrics to identify and stop fraud as it occurs.
Featured image credit: edited from freepik
