According to Mastercard, its new Consumer Fraud Risk tool helps to predict scams in real-time, providing banks with the intelligence to help stop a payment before funds are lost.

The tool has been suggested to be based on insights from fraud-related transactional data, and is overlaid with specific analysis factors such as account names, payment values, payer and payee history, and the payee’s links to accounts associated with scams.

TSB has been named as one of the first banks to have adopted the tool.

According to Mastercard, “the bank says that it has dramatically increased its fraud detection.” The payment network processor also said that based on TSB’s results, “the amount of scam payments prevented over a year would equate to almost £100m saved across the UK, should their performance be mirrored by all banks.”

Interestingly, last month, Robin Bulloch, TSB’s Chief Executive, apparently signed a letter to the UK Government on how the UK has become a “global hotspot” for scams.

The other banks that have signed up to use Mastercard’s tool allegedly include Bank of Scotland, Halifax, and Lloyds Bank, as well as the fintech unicorn Monzo.

The banks are to adopt the tool over the course of 2023, Mastercard said.

Speaking on the adoption of Mastercard’s tool, Paul Davis, the Director of Fraud Prevention at TSB, commented: “Spotting fraudulent payments among millions made every day is like finding a needle in a haystack, with scams becoming ever more complex – so prevention and monitoring tools are key.”

“Our partnership with Mastercard is providing the intelligence needed to identify fraudulent accounts and prevent payments ever reaching them.”

While Mastercard is rolling out Consumer Fraud Risk in the UK first, the payment network processor says it’s assessing further international markets to scale the solution.

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As UK Finance’s Annual Fraud Report 2023 highlighted, over £1.2 billion was stolen through fraud in 2022, which marks a slight reduction of 8% over the previous year.

The report found that social engineering — when criminals manipulate or dupe victims into handing over potentially sizable sums of money — continues to be a key driver for fraud losses in 2022.

From romance to investment to impersonation scams, UK Finance’s data also shows that there was a 6% increase in scam cases.

In Scotland alone, overall fraud skyrocketed by 194% in 2022, according to research from professional services firm KPMG.