Feezdai and Mastercard Partner to Secure P2P Market from Scams

Consumers lost more than $1 trillion to scams last year. As more consumers shop, bank, and make financial exchanges in the digital payments space, scammers will actively look for opportunities to exploit trust and steal money. The latest collaboration between Feedzai and Mastercard empowers banks to better protect consumers from scams by combining two powerful tools: fast-acting AI solutions and a large intelligence network of transactions.

Feedzai, the world’s premier end-to-end financial crime prevention platform, and Mastercard, the financial services giant and worldwide technology leader, are working together to protect customers and businesses from scams. Under the partnership, Mastercard will deploy its Consumer Fraud Risk (CFR) solution to customers worldwide using Feedzai’s advanced AI-powered fraud prevention platform.

Key Takeaways

• Feedzai and Mastercard are collaborating to deploy Mastercard’s Consumer Fraud Risk (CFR) solution at a global level by powering it with Feedzai’s risk engine to analyze every digital transaction and detect fraud in real time. 
• Mastercard will apply insights from deploying CFR in the UK on the Vocalink network to P2P networks worldwide using Feedzai’s AI technology
• The collaboration comes as the global peer-to-peer market is experiencing rapid growth.
• Banks can use a wealth of data to assess if a transaction is too risky and uncover money mule activity within their own systems
• The collaboration enables Mastercard to deliver its solution to banks worldwide at scale.

How Feedzai’s Risk Engine Boosts Mastercard’s CFR to Stop Scams

CFR is Mastercard’s own AI-powered solution designed to protect consumers from scam losses that move at the speed of a button. CFR rapidly reviews multiple data points included in a transaction and delivers a customer risk score in real-time to both the sending and receiving bank.  

Feedzai’s risk engine platform supports CFR by analyzing every digital transaction to detect fraud in real time. Using a combination of device intelligence, network data, and behavioral biometrics data, our AI-powered risk engine identifies suspicious transactions as they unfold. The solution rapidly works to stop fraud losses before they can reach the point of transaction.

CFR has already seen notable success in the UK market through the Vocalink network. Data from the UK’s Payment Systems Regulator found losses from authorized push payment (APP) scams declined by 12% in 2023. Mastercard will now use Feedzai’s AI-powered infrastructure to replicate this success on a global level.

Securing the Expanding P2P Market

Feedzai and Mastercard’s combined capabilities empowers banks to monitor payments for fraud in real time. Banks have an opportunity to stop both outbound and inbound fraud transactions and protect their customers from scam losses. Receiving banks can use these insights to identify money mule accounts within their network.

The peer-to-peer (P2P) market is growing rapidly. Research from the Global Anti-Scam Alliance (GASA) shows peer-to-peer online payments are one of the most popular methods by which scam victims lose money. Roughly 14% of scam victims worldwide reported paying their scammer this way. 

As the P2P market continues its incredible growth, the partnership agreement between Feedzai and Mastercard is coming at a critical juncture. Our collaboration with Mastercard aims to make this popular method of payment more secure for users worldwide.

Data is Essential to Keeping Customers Secure

While many banks are committed to stopping fraud and scams, challenges with accessing data remain a hurdle. In some markets, large volumes of critical data are stored with the central bank of that nation. 

CFR’s success is due to its ability to share essential data from different central banks. Every transaction that touches CFR data is collected across the Mastercard payment intelligence network.

The result is a wealth of data that can assess and analyze a customer’s every transaction beyond just a single bank. Banks and financial institutions can now gain insights into a customer’s activity in other institutions. With these insights, banks can assess whether or not a transaction is too risky to approve. 

Feedzai-Mastercard Partnership is Key to Delivering Scam Prevention at Scale

With the value of P2P transactions forecast rising, consumer demand for faster payments is clearly growing. Meanwhile, regulations like the UK’s PSR requirement to split liability between sending and receiving organizations add more pressure on banks to prevent and block scam losses instead of reacting to them after they happen. 

Payment networks like Mastercard will play an important role in protecting transactions that move across its own infrastructure. Delivering a solution at scale to cover as many global markets as possible is critical. That’s where AI-native partners like Feedzai come into play, delivering the technological foundation to detect and prevent fraud before it can cause real damage. 

The Feedzai-Mastercard alliance offers banks and financial institutions the ability to engage with a large market of P2P transactions at scale. Tapping into a massive volume of P2P exchanges creates a shared intelligence network based on proven fraud detection capability—and one that operates on the world’s best AI-based infrastructure. 

Our latest collaboration with Mastercard takes our relationship to the next level, giving nations a powerful intelligence-based tool to combat fraud across their financial ecosystems. AI-powered solutions, combined with a vast wealth of payment data, will enable both parties to deliver on our shared goal of putting customers first and using data and technology to stop scams.