Mastercard announced its partnership with Microsoft to launch an enhanced identity solution aimed at combating digital fraud.
Although shopping online is quite convenient for consumers, it can be very expensive for businesses, especially when dealing with fraudsters. Among the many types of online fraud, first-party fraud in which a legitimate purchase is made online and then challenged is growing rapidly and is now estimated to be a $50 billion global problem.
To meet the needs of its customers, Mastercard has enhanced its Digital Transaction Insights solution with next-generation authentication and real-time business intelligence capabilities with help from Microsoft. This isn’t the first time the two companies have collaborated, as in 2018 they worked together to make it easier to verify customers’ digital identities.
Mastercard’s President of Cybersecurity and Intelligence, Ajay Bhalla, explained in a press release how the company’s enhanced Digital Transaction Insights solution will help businesses and financial institutions better deal with online fraud, saying:
“Online shopping should be simple, fast and secure. But it’s not always the case. We are committed to developing advanced identity and fraud technology to help improve the real-time intelligence we provide to financial institutions around the world. This builds on our long-standing commitment to working across the industry to deliver advanced technologies that foster trust and help build a safe and thriving digital ecosystem for all.
Information about digital transactions
Mastercard’s Digital Transaction Insights combines company network information with business owner data to confirm that a consumer is who they say they are. At the same time, financial institutions have additional information to optimize their authorization decisions.
From click-to-pay functionality and wearables to digital wallets and in-app purchases, Mastercard’s Digital Transaction Insights is used in a wide range of online payment instances.
Microsoft will be the first partner to share knowledge and integrate with the company’s new Digital Transaction Insights solution across multiple industries. The company’s proprietary Dynamics 365 Fraud Protection risk assessment, which leverages adaptive AI to facilitate real-time fraud detection to identify risky behavior, has been integrated with Digital Transaction Insights to better enable the sharing of information in real time.
Digital Transaction Insights is enabled by EMV 3-D Secure and Mastercard’s Mastercard Identity Check global authentication solution. In 2021 alone, Mastercard Identity Check was able to increase transaction approval rates by 14% across billions of transactions.
We’ll likely know more about the credit card company’s new trust tool and how it’s being used to fight digital fraud once companies start using it to improve their payment instances.