Artificial intelligence has transformed how financial crimes are carried out, making scam detection more sophisticated and complex. Fraudsters use AI to create deepfake voices, manipulate transaction patterns, and bypass traditional security measures. As financial institutions work to stay ahead, advanced fraud detection solutions are becoming essential. Companies are investing in AI-powered tools to identify suspicious activity in real time and protect consumers from emerging threats.
The Mastercard-Feedzai partnership has formed a company specializing in AI-driven risk management to strengthen fraud prevention efforts. This partnership will enhance security by leveraging machine learning to detect and stop fraudulent transactions before they cause harm. Combining Mastercard’s global network with Feedzai’s advanced analytics, the two companies are working to protect financial systems from increasingly complex scams.
Key Takeaways
- As fraudsters increasingly exploit AI to develop sophisticated scams—ranging from deepfake voices to manipulated transaction patterns—traditional fraud prevention methods are no longer sufficient, creating an urgent need for real-time, AI-powered risk management.
- Mastercard has joined forces with Feedzai, leveraging Mastercard’s vast global network alongside Feedzai’s cutting-edge, machine learning–driven analytics to detect and intercept fraudulent transactions as they occur.
- The integration of Mastercard’s Consumer Fraud Risk solution with Feedzai’s platform has already demonstrated tangible results, such as a 12% reduction in authorized push payment scams in the UK, highlighting the effectiveness of AI-based fraud prevention.
- This alliance underscores the importance of responsible AI and cross-industry collaboration in financial security. It ensures that advanced technology boosts efficiency and customer trust and adheres to high standards of ethical data usage and regulatory compliance.
Mastercard-Feedzai Partnership Join Forces to Strengthen AI-Powered Fraud Prevention
Today, digital transactions have become the backbone of global commerce, and fraudsters’ sophistication has also evolved in tandem with technological advancements. Integrating artificial intelligence (AI) into financial systems, while offering numerous benefits, has opened new avenues for fraudulent activities. Recognizing the pressing need to combat these AI-driven scams, Mastercard has partnered with Feedzai, a leader in AI-based financial crime prevention, to bolster defenses against such threats.​
The collaboration between Mastercard and Feedzai is timely, considering the alarming statistics surrounding financial fraud. In fact, last year, fraudulent schemes resulted in losses exceeding $1 trillion; over half of all consumers reported encountering a scam at least weekly.
The financial sector has witnessed a seismic shift toward electronic transactions, with businesses and consumers increasingly relying on them. While enhancing convenience, this transition has also expanded the attack surface for cybercriminals. Traditional fraud detection mechanisms, often reactive and rule-based, are proving inadequate against modern fraudsters’ dynamic and adaptive strategies. The rise of AI has further complicated this scenario, as malicious actors leverage machine learning algorithms to craft sophisticated scams that can bypass conventional security measures.​
In response to these escalating threats, Mastercard announced on February 18, 2025, a strategic collaboration with Feedzai to enhance fraud prevention capabilities globally. This partnership empowers financial institutions with advanced tools to identify and stop fraud in real time, safeguarding businesses and consumers from financial losses. ​
Mastercard’s Consumer Fraud Risk (CFR) solution, an AI-driven system designed to provide real-time risk assessments for transactions, is at the heart of this collaboration. By integrating Feedzai’s advanced fraud detection platform, which operates in more than 90 countries, Mastercard seeks to accelerate the deployment of CFR across key markets worldwide. This integration enables sending and receiving financial institutions to access intelligence that helps recognize and prevent fraudulent activities during account-to-account payments. ​
The effectiveness of CFR was demonstrated in the United Kingdom, where its implementation in 2023 led to a significant reduction in authorized push payment (APP) scams. According to data from the UK’s Payment Systems Regulator (PSR), the value of APP scams decreased by 12% following the CFR deployment. This success underscores the potential of AI-driven solutions in mitigating fraud and protecting consumers. ​
Johan Gerber, Mastercard’s Head of Security Solutions and Executive Vice President, noted that scam fraud now touches over half of the global population, inflicting severe damage on consumers and generating losses that eclipse the GDP of many individual countries. He emphasized that by harnessing Feedzai’s global platform, they plan to roll out their groundbreaking scams solution across additional markets, enabling financial institutions to counter financial crime more swiftly and effectively than ever.
Top financial institutions already trust Feedzai’s AI-driven Financial Crime Prevention Platform. It safeguards over one billion consumers and secures upwards of $8 trillion in transactions annually.
Nuno Sebastiao, CEO of Feedzai, expressed enthusiasm about expanding the partnership with Mastercard to tackle the rising tide of financial crime. He highlighted that the rapid increase in scams makes it imperative for financial institutions to embrace real-time, AI-powered solutions. This collaboration marks the first time Mastercard’s proven Consumer Fraud Risk score will be introduced to new markets, enhancing security and resilience against financial threats on a global scale.
Feedzai’s AI-driven Financial Crime Prevention Platform is central to this collaboration. It scrutinizes every digital transaction, from card purchases to instant transfers, evaluating various real-time risk indicators. By integrating network data, device intelligence, and behavioral biometrics, the platform rapidly detects suspicious activities, allowing financial institutions to act swiftly before economic losses occur. This proactive strategy is essential for combating AI-powered fraud, where rapid and precise response is critical. ​
The integration of AI in fraud prevention offers several advantages. AI systems can process vast amounts of data at unprecedented speeds, identifying patterns and anomalies that may elude human analysts. This capability is particularly vital in real-time transactions, where delays in detection can result in substantial financial losses. Moreover, AI-driven solutions can adapt to emerging threats, continuously learning from new data to enhance their predictive accuracy.​
However, deploying AI in fraud prevention is not without challenges. Ensuring the ethical use of AI, maintaining data privacy, and addressing potential biases in AI algorithms are critical considerations. Both Mastercard and Feedzai have emphasized their commitment to responsible AI practices, ensuring that their solutions protect against fraud and uphold the highest standards of integrity and fairness.​
Julie Conroy, CIO at Datos Insights, emphasized that global fraud and scams have spurred an urgent demand for next-generation technology solutions. She urged financial institutions to integrate third-party data into their fraud defense strategies to counteract these escalating threats. By leveraging Mastercard’s well-established Consumer Fraud Risk score alongside Feedzai’s specialized risk scoring technology, this partnership offers a compelling fusion of Mastercard’s expansive data expertise and Feedzai’s targeted, purpose-built capabilities.
The partnership also highlights the importance of collaboration in combating financial crime. By leveraging Feedzai’s expertise in AI-based fraud detection and Mastercard’s extensive network and resources, the two companies aim to create a more secure financial ecosystem. This collaborative approach extends beyond technology, encompassing shared intelligence, best practices, and coordinated responses to emerging threats.​
Looking ahead, the integration of AI in financial systems is expected to deepen, offering both opportunities and challenges. While AI can enhance efficiency, customer experience, and security, it also necessitates robust governance frameworks to manage the risks associated with its use. Financial institutions must balance innovation with caution, ensuring that technological advancements do not outpace their capacity to manage potential vulnerabilities.
This initiative is a key component of Mastercard’s comprehensive security blueprint, which aims to phase out traditional passwords in favor of biometric authentication by 2030. Recent enhancements to its Identity Check program complement this initiative. These advancements signal a broader trend among financial institutions toward adopting behavioral biometrics as they work to curb the rising tide of digital payment fraud.
About Mastercard
Mastercard is a global technology company in the payments industry, dedicated to powering a connected and inclusive digital economy. At its core, Mastercard facilitates secure, seamless transactions between consumers, merchants, and financial institutions worldwide. By licensing its renowned brands to banks and partnering with fintech innovators, it processes millions of credit, debit, and prepaid transactions daily across more than 200 countries and in over 160 currencies.
The company’s robust network and state-of-the-art digital solutions streamline everyday purchases and set the standard for secure, reliable, and efficient payment processing in a rapidly evolving financial landscape.
Driven by a commitment to innovation and social impact, Mastercard continuously invests in cutting-edge technologies such as biometric authentication, tokenization, and open banking solutions to stay ahead of emerging threats and market demands. Its forward-thinking initiatives aim to eliminate payment friction while enhancing security and reducing fraud, paving the way for a cashless future. Beyond its technological prowess, Mastercard is equally focused on fostering financial inclusion and community empowerment through diverse corporate programs and partnerships that promote global economic growth and sustainability.
About Feedzai
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Feedzai is a leading global fintech company specializing in real-time financial crime prevention through advanced artificial intelligence and machine learning technologies. Founded in 2011 and headquartered in Coimbra, Portugal—with significant operations in the US and other key markets—the company has rapidly emerged as a trusted partner for banks, payment service providers, and retailers worldwide. Feedzai’s flagship RiskOps platform harnesses big data and predictive analytics to detect, prevent, and manage fraud across various financial transactions, enabling clients to safeguard trillions in payment while reducing operational risks and compliance costs.
Committed to constant innovation and excellence, Feedzai continuously evolves its suite of solutions to meet the complex challenges of a digital economy. Its technology enhances the accuracy and speed of fraud detection and adapts dynamically to emerging threats, ensuring a secure and seamless customer experience. By integrating state-of-the-art biometrics, real-time transaction monitoring, and automated regulatory compliance tools, Feedzai is at the forefront of the battle against financial crime, empowering institutions to protect millions of consumers and maintain trust in an increasingly interconnected financial ecosystem.
Conclusion
The partnership between Mastercard and Feedzai marks a significant step in the fight against AI-driven fraud. As digital transactions continue to grow, so do cybercriminals’ tactics, making real-time fraud detection more important than ever. By combining Mastercard’s global network with Feedzai’s AI-powered analytics, financial institutions gain more potent tools to identify and stop fraudulent activities before they cause harm. The early success of their collaboration, particularly in reducing authorized push payment scams in the UK, highlights the potential of AI in safeguarding financial transactions.
Looking ahead, this partnership reflects a broader trend in the financial industry—leveraging AI to enhance security while maintaining ethical standards in fraud prevention. As scams become more sophisticated, financial institutions must continuously adapt, integrating advanced technology to stay ahead of emerging threats. Mastercard and Feedzai’s collaboration sets a precedent for how AI can be used responsibly to protect businesses and consumers. With ongoing innovation and a focus on real-time prevention, their efforts will play a key role in shaping the future of financial security.
