Mastercard has announced a new fraud detection system for financial institutions.
Called Early Detection System, it’s essentially a big data analytics system, with Mastercard explaining in a statement that it uses “network insights, predictive capabilities and a combination of internal and external data sources.” Mastercard says the system can identify the active trading of compromised account information, and criminals’ tentative card use prior to larger-scale fraud schemes; the system can also flag data that hasn’t yet been found to be compromised, but is at risk. With its various analytical capabilities, Early Detection System “captures all types of fraud across all transaction channels,” Mastercard says.
Elaborating further, Mastercard Global Enterprise Risk and Security President Ajay Bhalla emphasized that the solution’s advantage over more traditional anti-fraud systems lies in its predictive capacity. “Our issuers can now proactively target the fraudulent activity resulting from previously breached or hacked data,” he said.
The solution arrives at a time of growing unease over the threat of digital data breaches, with the latest update to Gemalto’s Breach Level Index indicating that between the last half of 2016 and the first half of this year, there was a 164 percent increase in the number of compromised data records; meanwhile, the use of encryption security has gone down. And a new study from Accenture indicates that digital security professionals in the enterprise by and large don’t have the resources they need to keep ahead of digital threats. That all points to an urgent need for sophisticated, automated threat assessment technologies, with Mastercard’s new Early Detection System fitting the bill pretty well.
October 2, 2017 – by Alex Perala