Mastercard and Microsoft Corp. have launched a refreshed identity solution designed to improve online shopping and detect digital fraud, the companies announced Monday (April 25).
Delivering a frictionless shopping experience is crucial as the eCommerce sector seeks to convert window shopping and price comparison visits to sales, the firms said.
While consumers like online shopping, cyberthieves are always seeking new ways to use those networks for theft. One emerging type of digital scam is known as first-party fraud, where an online purchase is made legitimately but later disputed. These schemes are estimated to cost businesses $50 billion globally.
Mastercard said to combat such schemes it has enhanced its Digital Transaction Insights solution with next-generation verification and instant decisioning intelligence capabilities.
The solution was designed to connect Mastercard’s network insights with the merchant’s data to confirm the customer is who they say they are and provide banks with additional intelligence required to optimize their authorization decisions.
“This partnership lays the foundation for the future of global fraud prevention where data silos are no longer a barrier to security,” said Charles Lamanna, corporate vice president of business applications and platforms at Microsoft, in a statement.
Ajay Bhalla, president of cyber and intelligence at Mastercard, said the company is committed to developing advanced identity and fraud technology to enhance the real-time intelligence to financial institutions (FIs) around the globe.
In an PYMNTS opinion piece published earlier this month, David Excell, founder of Featurespace, an Atlanta-based behavioral analytics software company, cited several trends to watch out for in 2022.
Read more: FinCrime Predictions, Trends to Watch
They include: fraud will force every single bank to fight for its reputation; anti-money laundering (AML) compliance will get to grips with cryptocurrency; banks will push for help with scam liability; consolidation in payments will bolster fraud prevention; and buy now, pay later (BNPL) will be an important front in the fight against fraud.
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