Mastercard’s Early Detection System Pinpoints Accounts at Risk of Fraud
Mastercard launched a new program to help card issuers identify accounts at-risk of fraud. The Early Detection System sends alerts when cards or accounts are exposed to data breaches or security incidents, allowing the issuer to monitor transactions more closely and catch fraud in the earliest stages.
Mastercard’s Early Detection System rates the risk level of each account so issuers can respond accordingly. For instance, a card with a low risk rating may be monitored closely and flagged when uncharacteristic transactions occur. A card with a high risk rating may be turned off completely and replaced with a new card.
Mastercard says its fraud detection service “provides issuers with alerts on a much broader set of at-risk accounts potentially 6 to 18 months ahead of traditional alerts.” Not only does it monitor criminal data trading, but it also looks for signs of fraud before a card is ever officially charged. Some data thieves will check card balances or make small charitable donations before they use the card to see if the account data they gave is correct. EDS can spot these actions and alert issuers accordingly.
A staggering 4.2 billion records were stolen last year. 40% of consumers use their replacement cards less often than their original cards. Mastercard hopes to improve these statistics with the Early Detection System to protect both consumers and card issuers.
This entry was posted in Credit Card News and tagged MasterCard , data breach , identity theft , fraud , fraud detection , credit card use , monitor transactions , replacement cards , early detection , early detection system , at risk accounts , fraud identification , catch fraud , detect fraud , EDS , card use
The information contained within this article was accurate as of October 4, 2017. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.