Mastercard Leans On Behavioral Biometrics in ‘Scam Protect’ Initiative

Mastercard has launched Scam Protect, a new suite of AI-powered solutions aimed at combating the growing threat of scams, fuelled by advanced technologies like AI. It’s the product of partnerships with Verizon, NatWest, and the Global Anti-Scam Alliance.

Mastercard is using an array of AI-powered tools and technologies to fight fraud as part of its Scam Protect initiative. One of the cornerstone technologies involves Mastercard Identity, which plays a critical role in verifying that a person is who they claim to be throughout the lifecycle of an account. This helps prevent fraudsters from opening or hijacking accounts to commit financial crimes, such as applying for credit under false pretenses or creating accounts to launder stolen funds.

Mastercard also employs behavioral biometrics, which analyzes the physical interactions a user has with their devices—such as typing speed or how they navigate a website or app—to detect any unusual behavior that might indicate scam-related activity. Mastercard added behavioral biometrics to its anti-fraud arsenal through its acquisition of NuData Security back in 2017, highlighting the latter’s NuDetect platform and its ability to distinguish between genuine end users and bots and fraudsters.

Another important tool is Mastercard’s Consumer Fraud Risk solution, which is currently implemented in the UK with ten major banks. This tool leverages AI and Mastercard’s extensive visibility into account-to-account transactions to provide real-time intelligence to banks. It lets them intervene and stop a payment to a scammer before the funds are transferred.

Mastercard also supports these technologies with Mastercard Open Banking solutions, which are designed to enhance the security and efficiency of account-based payments by confirming account ownership and validating identity details through real-time data exchange.

“Scammers are exploiting new technologies, making their deception and impersonation scams increasingly difficult for consumers to recognize,” said Mastercard’s EVP of Identity Solutions, Chris Reid. “Building on our innovations in AI and key partnerships, we are supporting financial institutions with insights to better detect and prevent scams, while helping consumers learn how to spot them.”

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April 26, 2024 – by Cass Kennedy