When it comes to tackling fraud, speed is always of the essence. Being able to proactively spot fraudulent transaction attempts and block them before they occur needs to be a key part of any bank’s strategy, while tools that can identify high-risk accounts are also highly important.
Therefore, Mastercard has recently introduced a new Early Detection System, which aims to help card issuers spot cards and accounts that are at greater risk of fraud based on their exposure in data breaches.
The company noted that in 2016, some 4.2 billion personal records were compromised, and last month’s equifax breach, which exposed the personal details of 143 million people, is a clear reminder of the risks businesses and consumers continue to face.
It also found that it can take as little as nine minutes for stolen data to be used after being posted to the dark web. Therefore, being able to identify which accounts are most at risk can help issuers take action faster and prevent more damage being down.
Mastercard’s Early Detection system uses a combination of internal and external data sources, as well as the company’s network insights, predictive capabilities to determine if a card is at risk. It then sends an alert to the issuer with a quantification of the level of risk.
The issuer is then able to use this information to more accurately prioritize what actions need to be taken, whether this is more closely monitoring transactions or proactively issuing a replacement card to the consumer.
Ajay Bhalla, president of enterprise risk and security at Mastercard, said: “Knowledge is power, and this service helps issuers act significantly faster and with greater precision to stop potential fraud before it occurs.”
The Early Detection System is available to issuers around the globe and captures all types of fraud across all transaction channels. Among the risks it can identify are active criminal trading of account data, cards being tested prior to being used for fraud and account data that appears at-risk, but does not have sufficient evidence to declare an Account Data Compromise event.
“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,” Mr Bhalla continued.