Mastercard, the giant payment company, announced that it has developed an artificial intelligence model to assist thousands of banks in its network to detect and eradicate fraudulent transactions.
The new advanced artificial intelligence model called Decision Intelligence Pro allows banks to assess suspicious transactions across their network in a favorable real-time manner and determine if they are legitimate or not.
The new artificial intelligence solution developed by Mastercard’s cybersecurity and fraud prevention teams can be compared to a repeated neural network.
Mastercard uses transformer models that primarily assist in obtaining the power of generative artificial intelligence.
The company internally designed everything related to the new solution, as it obtained all types of data from the ecosystem.
Due to the nature of the company’s work, it obtains all transaction data that comes to it from the ecosystem.
Mastercard relies on open source in some cases when needed, although it mostly develops technology internally.
Mastercard has trained its algorithms on data from about 125 billion transactions conducted through the company’s card network annually.
Unlike larger linguistic models that focus on words, Mastercard’s artificial intelligence solution focuses on understanding the relationships between merchants and predicting where fraudulent transactions may occur.
Mastercard algorithm uses the cardholder’s visit history to the merchant, instead of textual inputs as a claim, to determine if the company involved in the transaction is a place the customer is likely to go to.
Then the algorithm generates paths through the Mastercard network to find the answer in the form of a score.
The degree is high if it follows the expected typical behavior of the cardholder, while the degree is low if it goes against this pattern. All of this process takes place within just fifty milliseconds.
Mastercard’s decision-making technology helps financial institutions improve their fraud detection rates by an average of 20 percent for new transactions.
The model, in some cases, resulted in improvements in fraud detection rates of up to 300 percent.
Mastercard announced that it has invested over 7 billion dollars in cybersecurity and artificial intelligence technologies over the past five years.
Visa is investing in artificial intelligence, which includes a $100 million investment fund for emerging artificial intelligence companies.
Mastercard expects that its algorithm could allow banks to maintain their financial resources by 20 percent through eliminating many of the costs usually allocated for evaluating illicit transactions.
Many companies in the field of payments and digital banking services have stated that artificial intelligence could lead to significant changes in their products.
PayPal announced last week the launch of new products that rely on artificial intelligence.
