Accuracy can be improved by 20%: nine UK banks have signed up to use an AI-based "consumer fraud risk system" to deal with fraud

CTOnews.com, July 7 (Xinhua)-- MasterCard (Mastercard) is selling a "consumer fraud risk system" to users, a tool based on artificial intelligence designed to help banks more effectively detect whether customers have been cheated, such as trying to transfer money to unrelated accounts.

MasterCard said nine of the UK's largest banks, including Lloyds Banking Group, British National Bank Group and Bank of Scotland Group, had registered to use the "consumer fraud risk system".

▲ source MasterCard

It is learned from ▲ MasterCard that after years of training in transaction data, the tool can predict whether the user's transfer object is fraudulent, and can detect fraudulent accounts posing as legitimate payees such as family, friends or enterprises.

PaulDavis, head of TSB Bank, which pioneered the system four months ago, said the system was at least 20 per cent more accurate in identifying potential frauds than manually.

Victims of fraud in the UK lost 484.2 million pounds (CTOnews.com) in 2022, according to research by UKFinance, the British banking association.

The British banks are preparing for new rules from the UK's payment system regulator that require banks to compensate customers affected by fraud from 2024, which had previously been not responsible for the fraud. users need to sign a voluntary agreement in advance and receive compensation only after they have been deceived. The deployment of such a "consumer fraud risk system" is more out of win-win considerations, which can not only prevent customers from being deceived, but also reduce the losses of banks.