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Mastercard (MA) AI to Aid Banks Detect Real-Time Payment Scams
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Mastercard Incorporated (MA - Free Report) is now empowering banks in the United Kingdom with its AI-powered Consumer Fraud Risk solution to combat real-time payment scams.
In collaboration with nine prominent UK banks, including Lloyds Bank, Halifax, Bank of Scotland, NatWest, Monzo and TSB, Mastercard utilizes vast amounts of payment data to identify real-time payment scams. Organized criminals often disguise scammed funds through a series of "mule" accounts.
To counter this, Mastercard has been working closely with UK banks for the past five years, tracking the flow of funds and closing down these accounts. By combining tracing insights with specific analysis factors such as account names, payment values, payer and payee history, and links to scam-associated accounts, Mastercard's AI solution enables banks to intervene proactively and prevent fraudulent payments.
TSB's Success Story
TSB, one of the early adopters of Mastercard's Consumer Fraud Risk tool, has experienced remarkable success in detecting and preventing scams. In just four months, the bank has witnessed a significant increase in fraud detection. Based on TSB's results, if all banks were to adopt this technology, the UK could potentially save nearly £100 million annually. Encouraged by these outcomes, other banks are scheduled to adopt Consumer Fraud Risk throughout 2023. Mastercard is exploring opportunities to scale the solution in international markets.
The Rise of Impersonation Scams and Mastercard's Solution
As banking and payment security advances, fraudsters have shifted their focus to impersonation tactics, aiming to deceive individuals and businesses into making payments to fraudulent entities. This is known as authorized push payment fraud and accounted for 40% of UK bank fraud losses in 2022. A staggering $4.6 billion of losses are projected in the United States and the United Kingdom by 2026. Mastercard’s technology will help banks identify and predict payments to fraudsters, enabling real-time intervention and protection for customers.
Mastercard's AI Revolutionizes Fraud Prevention
For over a decade, Mastercard has been at the forefront of AI integration, using the technology as a fundamental tool to identify patterns in fraud. Through its AI-powered cybersecurity solutions, Mastercard has prevented over $35 billion in fraud losses in the past three years alone. The introduction of Consumer Fraud Risk has proven to be a game changer. By combining AI insights with comprehensive customer behavior analysis, banks can develop targeted fraud strategies and combat different types of scams, such as purchase scams, impersonation scams and romance scams.
With the help of partnerships with major UK banks and a commitment to expanding its solution globally, Mastercard is leading the charge in curbing cyber fraud.
Zacks Rank and Price Performance
Shares of Mastercard have gained 12.1% in a year compared with the industry’s 11.6% growth.
Some better-ranked stocks from the same space are DLocal Limited (DLO - Free Report) , Visa (V - Free Report) and WEX (WEX - Free Report) , each carrying Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for DLO’s 2023 and 2024 earnings per share indicates a year-over-year increase of 54.1% and 40.4%, respectively. The consensus estimate moved north by 1 cent each respectively for 2023 and 2024 in the last 30 days. Year to date, DLO shares have lost 25.3%.
Visa delivered an average four-quarter earnings surprise of 8.03%. The Zacks Consensus Estimate for V’s 2023 and 2024 earnings per share indicates a year-over-year increase of 14.5% and 12.8%, respectively. Year to date, Visa shares have gained 14.2%.
WEX delivered an average four-quarter earnings surprise of 5.36%. The Zacks Consensus Estimate for WEX’s 2023 and 2024 earnings per share indicates a year-over-year increase of 3.8% on 12.7% higher revenues. Year to date, WEX shares have gained 9.4%.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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Mastercard (MA) AI to Aid Banks Detect Real-Time Payment Scams
Mastercard Incorporated (MA - Free Report) is now empowering banks in the United Kingdom with its AI-powered Consumer Fraud Risk solution to combat real-time payment scams.
In collaboration with nine prominent UK banks, including Lloyds Bank, Halifax, Bank of Scotland, NatWest, Monzo and TSB, Mastercard utilizes vast amounts of payment data to identify real-time payment scams. Organized criminals often disguise scammed funds through a series of "mule" accounts.
To counter this, Mastercard has been working closely with UK banks for the past five years, tracking the flow of funds and closing down these accounts. By combining tracing insights with specific analysis factors such as account names, payment values, payer and payee history, and links to scam-associated accounts, Mastercard's AI solution enables banks to intervene proactively and prevent fraudulent payments.
TSB's Success Story
TSB, one of the early adopters of Mastercard's Consumer Fraud Risk tool, has experienced remarkable success in detecting and preventing scams. In just four months, the bank has witnessed a significant increase in fraud detection. Based on TSB's results, if all banks were to adopt this technology, the UK could potentially save nearly £100 million annually. Encouraged by these outcomes, other banks are scheduled to adopt Consumer Fraud Risk throughout 2023. Mastercard is exploring opportunities to scale the solution in international markets.
The Rise of Impersonation Scams and Mastercard's Solution
As banking and payment security advances, fraudsters have shifted their focus to impersonation tactics, aiming to deceive individuals and businesses into making payments to fraudulent entities. This is known as authorized push payment fraud and accounted for 40% of UK bank fraud losses in 2022. A staggering $4.6 billion of losses are projected in the United States and the United Kingdom by 2026. Mastercard’s technology will help banks identify and predict payments to fraudsters, enabling real-time intervention and protection for customers.
Mastercard's AI Revolutionizes Fraud Prevention
For over a decade, Mastercard has been at the forefront of AI integration, using the technology as a fundamental tool to identify patterns in fraud. Through its AI-powered cybersecurity solutions, Mastercard has prevented over $35 billion in fraud losses in the past three years alone. The introduction of Consumer Fraud Risk has proven to be a game changer. By combining AI insights with comprehensive customer behavior analysis, banks can develop targeted fraud strategies and combat different types of scams, such as purchase scams, impersonation scams and romance scams.
With the help of partnerships with major UK banks and a commitment to expanding its solution globally, Mastercard is leading the charge in curbing cyber fraud.
Zacks Rank and Price Performance
Shares of Mastercard have gained 12.1% in a year compared with the industry’s 11.6% growth.
MA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Some better-ranked stocks from the same space are DLocal Limited (DLO - Free Report) , Visa (V - Free Report) and WEX (WEX - Free Report) , each carrying Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for DLO’s 2023 and 2024 earnings per share indicates a year-over-year increase of 54.1% and 40.4%, respectively. The consensus estimate moved north by 1 cent each respectively for 2023 and 2024 in the last 30 days. Year to date, DLO shares have lost 25.3%.
Visa delivered an average four-quarter earnings surprise of 8.03%. The Zacks Consensus Estimate for V’s 2023 and 2024 earnings per share indicates a year-over-year increase of 14.5% and 12.8%, respectively. Year to date, Visa shares have gained 14.2%.
WEX delivered an average four-quarter earnings surprise of 5.36%. The Zacks Consensus Estimate for WEX’s 2023 and 2024 earnings per share indicates a year-over-year increase of 3.8% on 12.7% higher revenues. Year to date, WEX shares have gained 9.4%.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.