Mastercard, Microsoft team for online shopping
Mastercard and Microsoft Corp. launched an updated identity solution designed to improve online shopping and detect digital fraud, the companies announced on Monday (April 25).
Providing a frictionless shopping experience is crucial as the e-commerce industry seeks to convert window shopping and comparison shopping visits into sales, the companies said.
While consumers love shopping online, cyberthieves are always looking for new ways to use these networks for theft. An emerging type of digital scam is known as first-party fraud, where an online purchase is made legitimately but later disputed. These programs are estimated to cost businesses $50 billion worldwide.
Mastercard said that to combat such schemes, it enhanced its Digital Transaction Insights solution with next-generation verification and instant decision-making capabilities.
The solution was designed to connect Mastercard’s network information with merchant data to confirm the customer is who they say they are and provide banks with the additional information needed to optimize their authorization decisions.
“This partnership lays the foundation for the future of global fraud prevention where data silos are no longer a barrier to security,” said Charles Lamanna, vice president of business applications and platforms at Microsoft, in a press release.
Ajay Bhalla, president of cyber and intelligence at Mastercard, said the company is committed to developing advanced identity and fraud technology to improve the real-time intelligence of financial institutions (FIs) around the world.
In a PYMNTS opinion piece published earlier this month, David Excell, founder of Featurespace, an Atlanta-based behavioral analytics software company, cited several trends to watch in 2022.
Read more: FinCrime predictions, trends to watch
They include: fraud will force every bank to fight for its reputation; anti-money laundering (AML) compliance will tackle cryptocurrency; banks will lobby for help with scam liability; payment consolidation will strengthen fraud prevention; and buy now, pay later (BNPL) will be an important front in the fight against fraud.