*Mastercard is collaborating with Microsoft on a new technology to more effortlessly verify that purchasers online are who they say they are, reduce merchant losses while improving the consumer experience

Gbenga Kayode | 绿帽献妻

Online shopping is said to be convenient for most consumers, but criminals like it, too. Since such cybercriminals do not need to physically possess a stolen credit card, they can easily make what appears to be legitimate purchases if they have a consumer鈥檚 credit card information, which is often bought and sold on the Dark Web.

绿帽献妻, however, gathered in a move to combat the problem, Mastercard is teaming up with Microsoft on a new technology to more easily verify that the purchaser is who they say they are.

Online shopping concept

The two global technology giants have assured that merchants would lose less money to fraudsters and consumers would enjoy a more seamless transaction experience.

According to the companies, a digital fraud that has emerged in recent years is 鈥渇irst-party fraud.鈥�

That鈥檚 when a legitimate purchase is made online but then later disputed. First-party fraud is estimated to cost merchants worldwide as much as $50 billion, agency report said.

Ajay Bhalla, President, Cyber and Intelligence at Mastercard reportedly said: “Shopping online should be simple, quick and secure but that isn’t always the case.

鈥淲e’re committed to developing advanced identity and fraud technology to help enhance the real-time intelligence we provide to financial institutions around the globe.

鈥淭his builds on our longstanding commitment of working across the industry to provide advanced technologies that enable trust, and help build a safe and thriving digital ecosystem for all.”

Digital transaction insights

Mastercard says it has already taken steps in that direction. It has combined its Digital Transaction Insights solution with next-generation authentication that allows for real-time decision-making.

That system links Mastercard’s network insights with the merchant’s own data to confirm that the consumer is who they claim to be. It also provides financial institutions with additional intelligence needed to optimize their authorization decisions.

Benefits for consumers

For consumers, the new-fangled partnership between MaterCard and Microsoft could mean fewer texts from their credit card company asking if they made a particular purchase.

Mastercard says Digital Transaction Insights is already used across a wide range of online checkout functions, from click-to-pay transactions to digital wallets.

Microsoft brings its Dynamics 365 Fraud Protection to the table. Its proprietary risk assessment leverages adaptive AI to enable real-time fraud detection by identifying risky behaviors.

According to Microsoft, this will help credit card issuers make better decisions when it comes to requests for authorisations, chargebacks, and refunds.

The result, it says, is a smoother process for consumers and fewer losses for merchants, report stated.

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