Mastercard on Monday announced the launch of an enhanced identity solution designed to improve the online shopping experience and combat digital fraud as part of a new collaboration with Microsoft.
Now more than ever, providing a frictionless shopping experience is critical as retailers look to shift storefront and price comparison visits to confirmed sales. And, as consumers appreciate the convenience of shopping online, fraudsters are also looking to develop new ways to use those same channels for ill-gotten gains. One of the growing types of digital fraud is first-party fraud, where a legitimate purchase is made online but later disputed. First party fraud is estimated at one $50 billion global problem.
Mastercard has responded directly to these needs by improving its Information about digital transactions solution with next-generation authentication and real-time business intelligence capabilities. The solution combines information from Mastercard’s network with the merchant’s own data to confirm that the consumer is who they claim to be, providing financial institutions with the additional information needed to optimize their authorization decisions and approve more authentic transactions. Digital Transaction Insights is used in a wide range of online payment instances, from click-to-pay functionality and wearable devices to digital wallets and in-app purchases.
Ajay Bhalla, President, Cyber and Intelligence at Mastercard, said:
“Online shopping should be simple, fast and secure. But it’s not always the case. We are committed to developing advanced identity and fraud technology to help improve the real-time intelligence we provide to financial institutions around the world. This builds on our long-standing commitment to working across the industry to deliver advanced technologies that foster trust and help build a safe and thriving digital ecosystem for all.
Microsoft will be the first partner to share knowledge and integrate with the new Digital Transaction Insights solution across multiple industries. Building on a long history of cross-collaboration, Microsoft’s proprietary Dynamics 365 Fraud Protection risk assessment, which leverages adaptive AI to aid in real-time fraud detection by identifying behaviors to risk in purchase, account and store activities, has been integrated into Mastercard. Digital Transaction Insights to better enable real-time intelligence sharing in an easily consumable and actionable format. This will allow issuers to improve their decision-making processes for authorizations, chargebacks and refunds. Additionally, organizations can improve transaction acceptance rates with insights that help them balance profitability and revenue opportunities against fraud losses and friction at checkout.
Charles Lamanna, vice president of enterprise applications and platforms at Microsoft, said:
“We are excited to partner with Mastercard to leverage our industry-leading, cloud-native fraud assessment tools to enable issuers and merchants to prevent more fraud and approve more genuine users. . This partnership lays the foundation for the future of global fraud prevention where data silos are no longer a barrier to security.
Digital Transaction Insights is enabled by EMV 3-D Secure and Mastercard Identity Check, a global authentication solution based on the enhanced industry standard. Both elements support the requirements of GDPR and other related regulations. In 2021 alone, Mastercard Identity Check drove a 14% increase in transaction approval rates across billions of transactions.
This article first appeared on fintechnews.am