As digital payments surge in the Philippines, Mastercard is intensifying its efforts to combat financial fraud by deploying advanced artificial intelligence (AI) technologies. Central to this initiative is the implementation of the TRACE (Trace Financial Crime) system, an AI-driven solution designed to detect and prevent illicit financial activities.
TRACE: Enhancing Fraud Detection
TRACE operates by analyzing extensive real-time transaction data, enabling it to trace suspicious fund movements and assign mule scores to identify potential fraudulent activities. In collaboration with BancNet, the operator of the local real-time payment service InstaPay, Mastercard has onboarded 36 domestic banks to utilize TRACE. This collaboration allows financial institutions to proactively prevent fraud, thereby bolstering the security of the country's expanding digital payments ecosystem.
The system's capability to scan over one trillion data points and determine the legitimacy of a transaction in under 50 milliseconds has led to a significant improvement in fraud detection rates. In some instances, detection rates have increased by up to 300%. This rapid analysis ensures that legitimate transactions proceed seamlessly while fraudulent ones are intercepted in real time.
Decision Intelligence Pro: Balancing Security and User Experience
In addition to TRACE, Mastercard has introduced Decision Intelligence Pro, an advanced risk management solution that assesses relationships between multiple entities within a transaction. This AI-powered tool enhances security measures while minimizing false declines, ensuring that genuine transactions are approved without unnecessary friction.
Global Commitment to Cybersecurity
Mastercard's dedication to combating financial crime extends beyond the Philippines. The company has agreed to acquire Recorded Future, a leading threat intelligence firm, for $2.65 billion. This acquisition aims to bolster Mastercard's capabilities in fraud prevention, real-time decision-making, and threat intelligence, further strengthening its global cybersecurity infrastructure.
By integrating AI-driven solutions like TRACE and Decision Intelligence Pro, Mastercard is proactively addressing the challenges posed by the rapid growth of digital payments in the Philippines. These technologies not only enhance the security of financial transactions but also maintain a seamless and trustworthy experience for consumers and businesses alike.
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