Mastercard has announced that it has developed an in-house generative AI to help combat fraud on its payment processing network.
Instead of relying on textual inputs, Mastercard’s algorithm uses a cardholder’s merchant visit history as a prompt to determine whether a transaction involves a business that the customer would likely visit. The algorithm generates pathways through Mastercard’s network, akin to heat-sensing radar, to provide a score as an answer.
A lower score indicates a behavior that deviates from the cardholder’s usual pattern, while a higher score reflects typical behavior. Mastercard claims that this entire process takes only 50 milliseconds. And, it turns out, the AI appears to be very good at its job.