October 3, 2017
While retailers and issuers have been ever at odds over various matters, fraud prevention is one issue that affects them both. Mastercard yesterday launched a tool for its issuers that it said will help predict card fraud in a faster and more targeted way.
As we continue to learn about massive hacks like the recent one at Equifax and, just last week, Sonic restaurants, consumers’ personal and payment card information is increasingly at risk. In fact, Mastercard research found it can take as little as nine minutes after being posted on the dark web for stolen information to be used in a fraudulent online transaction.
Mastercard said its Early Detection System will leverage the company’s visibility into its massive network along with predictive capabilities and other data sources to determine if a particular card is at risk and generate a score to quantify the risk. After being notified of the risk score, issuers can take the action they feel is appropriate, which could range from keeping a closer eye on the transactions the card is involved in, to canceling and reissuing a compromised card.
“Knowledge is power, and this service helps issuers act significantly faster and with greater precision to stop potential fraud before it occurs,” said Ajay Bhalla, president of enterprise risk and security at Mastercard. “Our issuers can now proactively target the fraudulent activity resulting from previously breached or hacked data, helping them reduce costs and maintain the best possible cardholder experience.”
Mastercard said it will use evidence of active criminal trading of account data along with indications of card testing and other data points to evaluate the likelihood a payment card has been compromised—potentially months sooner than usual.