Mastercard said it expects its latest software update to be able to discover that your credit or debit card number has been compromised before it ends up in the hands of a cybercriminal
Mastercard has announced that it expects to detect compromised credit or debit card numbers before they fall into the hands of cybercriminals.
The company is rolling out a new software update this week, integrating artificial intelligence into its fraud-prediction technology. This will allow for faster detection of patterns in stolen cards and enable banks to replace them before criminals can use them.
“Generative AI is going to allow to figure out where did you perhaps get your credentials compromised, how do we identify how it possibly happened, and how do we very quickly remedy that situation not only for you, but the other customers who don’t know they are compromised yet,” said Johan Gerber, executive vice president of security and cyber innovation at Mastercard.
With this update, Mastercard can use patterns or contextual information, such as geography, time and addresses, combined with incomplete but compromised credit card numbers to reach cardholders sooner to replace the compromised card. These patterns can also be used in reverse to potentially identify compromised merchants or payment processors.
Billions of stolen credit and debit card details are up for grabs in the dark web’s marketplaces, with criminals able to snap them up easily. These details have been pilfered from merchants during data breaches over time, as well as from individuals who’ve had the misfortune of using their cards at compromised gas stations, ATMs, or online stores.
These stolen card numbers can go unnoticed for an extended period sometimes weeks, months, or even years. It’s often not until payment networks delve into the the dark web themselves, a merchant is alerted to a breach, or a crook actually uses the card, that banks and payment networks realise a group of cards may be at risk.
“We can now actually proactively reach out to the banks to make sure that we service that consumer and get them a new card in her or his hands so they can go about their lives with as little disruption as possible,” Gerber explained.
Payment networks are on a mission to ditch the old-school “static” credit and debit card numbers those are the ones with a single card number and expiration date used everywhere in favour of unique numbers for each transaction. However, this shift could take a while, especially in the US , which is known for taking its time adopting new payment tech.
While over 90% of all face-to-face transactions globally now utilise chip cards, the figure in the US is nearer to 70%, according to EMVCo, the tech organisation behind the chip in credit and debit cards. Mastercard’s update arrives as its main rival, Visa Inc. , also seeks ways to encourage consumers to abandon the 16-digit credit and debit card number.
Just last week, Visa announced significant changes to how credit and debit cards will function in the US, indicating that Americans will carry fewer physical cards in their wallets, and the 16-digit credit or debit card number printed on every card will become increasingly irrelevant.
