Nine British Banks Sign Up To New AI Tool for Tackling Scams

Mastercard is selling a new artificial intelligence-powered tool that helps banks more effectively spot if their customers are trying to send money to fraudsters. From a report: Nine of the UK's biggest banks, including Lloyds Banking, Natwest and Bank of Scotland, have signed up to use the Consumer Fraud Risk system, Mastercard told Bloomberg News. Trained on years of transaction data, the tool helps to predict whether someone is trying to transfer funds to an account affiliated with "authorized push payment scams." This type of fraud involves tricking a victim into moving money into an account falsely posing as a legitimate payee, such as a family member, friend or a business. The tool comes as UK banks prepare for new rules from the Payment Systems Regulator that will require them to compensate customers affected by APP scams from 2024. Historically banks haven't been liable for this type of fraud, although some signed a voluntary agreement to pay back victims. Ajay Bhalla, president of cyber and intelligence at Mastercard, described APP scams as a "huge problem" that banks have historically struggled to detect because victims' accounts aren't compromised. Clients voluntarily make the transfer and so pass many of the security checks used to identify other types of fraud, such as unauthorized payments, he said.

Read more of this story at Slashdot.