This offering, which was developed in collaboration with BasePoint Analytics, uses a new sophisticated risk-scoring model to detect potential fraudulent PIN debit transactions in real-time, during the authorization process. The model uses advanced analytics that consider factors such as account spending, device level (ATM and POS) activity, and historical transactions to calculate the likelihood of fraud on an individual ATM card or debit account.
In practice, this means that, when a debit card is swiped and the PIN is entered, MasterCard’s technology quickly examines and scores the transaction for potential fraud, allowing the issuing bank to advise the merchant as to whether to accept or decline the transaction in real-time.
MasterCard said that the fraud-fighting solution differs from competitive offerings as is the only network-installed, global ATM and PIN POS fraud detection tool in the industry to protect PIN transactions, which are poised for double-digit growth for the next few years.
PIN debit transactions continue to be popular among consumers who want a fast, convenient and safe way to access cash and pay for goods and services all over the world, said Patricia Preston, senior vice president of MasterCard Worldwide. Our new solution allows banks and merchants to proactively mitigate fraud on these transactions without consumers having to change how they use their cards.
MasterCard Online Fraud Monitor will be available during the first quarter of 2007.
