Using AI, Mastercard Expects to Find Compromised Cards Quicker, Before They Get Used by Criminals

FILE - A sign indicating MasterCard credit cards are accepted is posted at a New York business, Jan. 21, 2015. Mastercard said Wednesday, May 21, 2024, that it expects to be able to discover that your credit or debit card number has been compromised well before it ends up in the hands of a cybercriminal. (AP Photo/Mark Lennihan, File)
FILE - A sign indicating MasterCard credit cards are accepted is posted at a New York business, Jan. 21, 2015. Mastercard said Wednesday, May 21, 2024, that it expects to be able to discover that your credit or debit card number has been compromised well before it ends up in the hands of a cybercriminal. (AP Photo/Mark Lennihan, File)
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Using AI, Mastercard Expects to Find Compromised Cards Quicker, Before They Get Used by Criminals

FILE - A sign indicating MasterCard credit cards are accepted is posted at a New York business, Jan. 21, 2015. Mastercard said Wednesday, May 21, 2024, that it expects to be able to discover that your credit or debit card number has been compromised well before it ends up in the hands of a cybercriminal. (AP Photo/Mark Lennihan, File)
FILE - A sign indicating MasterCard credit cards are accepted is posted at a New York business, Jan. 21, 2015. Mastercard said Wednesday, May 21, 2024, that it expects to be able to discover that your credit or debit card number has been compromised well before it ends up in the hands of a cybercriminal. (AP Photo/Mark Lennihan, File)

Mastercard said Wednesday that it expects to be able to discover that your credit or debit card number has been compromised well before it ends up in the hands of a cybercriminal.

In its latest software update rolling out this week, Mastercard is integrating artificial intelligence into its fraud-prediction technology that it expects will be able to see patterns in stolen cards faster and allow banks to replace them before they are used by criminals.

“Generative AI is going to allow to figure out where did you perhaps get your credentials compromised, how do we identify how it possibly happened, and how do we very quickly remedy that situation not only for you, but the other customers who don't know they are compromised yet,” said Johan Gerber, executive vice president of security and cyber innovation at Mastercard, in an interview.

Mastercard, which is based in Purchase, New York, says with this new update it can use other patterns or contextual information, such as geography, time and addresses, and combine it with incomplete but compromised credit card numbers that appear in databases to get to the cardholders sooner to replace the bad card, The AP reported.

The patterns can now also be used in reverse, potentially using batches of bad cards to see potentially compromised merchants or payment processors. The pattern recognition goes beyond what humans could do through database inquiries or other standard methods, Gerber said.

Billions of stolen credit card and debit card numbers are floating in the dark web, available for purchase by any criminal. Most were stolen from merchants in data breaches over the years, but also a significant number have been stolen from unsuspecting consumers who used their credit or debit cards at the wrong gas station, ATM or online merchant.

These compromised cards can remain undetected for weeks, months or even years. It is only when the payment networks themselves dive into the dark web to fish for stolen numbers themselves, a merchant learns about a breach, or the card gets used by a criminal do the payments networks and banks figure out a batch of cards might be compromised.

“We can now actually proactively reach out to the banks to make sure that we service that consumer and get them a new card in her or his hands so they can go about their lives with as little disruption as possible,” Gerber said.

The payment networks are largely trying to move away from the “static” credit card or debit card numbers — that is a card number and expiration date that is used universally across all merchants — and move to unique numbers for specific transactions. But it may take years for that transition to happen, particularly in the US where payment technology adoption tends to lag.

While more than 90% of all in-person transactions worldwide are now using chip cards, the figure in the US is closer to 70%, according to EMVCo, the technological organization behind the chip in credit and debit cards.

Mastercard's update comes as its major competitor, Visa Inc., also looks for ways to make consumers discard the 16-digit credit and debit card number. Visa last week announced major changes to how credit and debit cards will operate in the US, meaning Americans will be carrying fewer physical cards in their wallets, and the 16-digit credit or debit card number printed on every card will become increasingly irrelevant.

 

 

 

 



From Algorithms to AI: A 25-Year Journey of Human Advancement

A facial recognition system using AI. Getty
A facial recognition system using AI. Getty
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From Algorithms to AI: A 25-Year Journey of Human Advancement

A facial recognition system using AI. Getty
A facial recognition system using AI. Getty

Over the past 25 years, technological innovation has accelerated unprecedentedly, transforming societies worldwide. Historically, technologies like electricity and the telephone took decades to reach 25% of US households—46 and 35 years respectively. In stark contrast, the internet did so in just seven years. Platforms like Facebook gained 50 million users in two years, Netflix redefined media consumption rapidly, and ChatGPT attracted over a million users in merely five days. This rapid adoption underscores both technological advancements and a societal shift in embracing innovation.

Leading this wave was Google, a startup founded in a garage. In 1998, Google introduced the PageRank algorithm, revolutionizing web information organization. Unlike traditional search engines focusing on keyword frequency, PageRank assessed page importance by analyzing interlinking, treating hyperlinks as votes of confidence and capturing collective internet wisdom. Finding relevant information became faster and more intuitive, making Google’s search engine indispensable globally.

Amid the data revolution, a new computing paradigm emerged: machine learning. Developers began creating algorithms that learn from data and improve over time, moving away from explicit programming. Netflix exemplified this shift with its 2006 prize offering $1 million for a 10% improvement in its recommendation algorithm. In 2009, BellKor’s Pragmatic Chaos succeeded using advanced machine learning, highlighting the power of adaptive algorithms.

Researchers then delved into deep learning, a subset of machine learning involving algorithms learning from vast unstructured data. In 2011, IBM’s Watson showcased deep learning’s power on “Jeopardy!” Competing against champions Brad Rutter and Ken Jennings, Watson demonstrated an ability to understand complex language nuances, puns, and riddles, securing victory. This significant demonstration of AI’s language processing paved the way for numerous natural language processing applications.

In 2016, Google DeepMind’s AlphaGo achieved a historic milestone by defeating Go world champion Lee Sedol. Go, known for its complexity and intuitive thinking, had been beyond AI’s reach. AlphaGo’s victory astonished the world, signaling that AI could tackle problems requiring strategic thinking through neural networks.

As AI capabilities grew, businesses began integrating these technologies to innovate. Amazon revolutionized retail by harnessing AI for personalized shopping. By analyzing customers’ habits, Amazon’s algorithms recommended products accurately, streamlined logistics, and optimized inventory. Personalization became a cornerstone of Amazon’s success, setting new customer service expectations.

In the automotive sector, Tesla led in integrating AI into consumer products. With Autopilot, Tesla offered a glimpse into transportation’s future. Initially, Autopilot used AI to process data from cameras and sensors, enabling adaptive cruise control, lane centering, and self-parking. By 2024, Full Self-Driving (FSD) allowed cars to navigate with minimal human intervention. This leap redefined driving and accelerated efforts to develop self-driving vehicles like Waymo’s.

Healthcare also witnessed AI’s transformative impact. Researchers developed algorithms detecting patterns in imaging data imperceptible to humans. For example, an AI system analyzed mammograms to identify subtle changes predictive of cancer, enabling earlier interventions and potentially saving lives.

In 2020, DeepMind’s AlphaFold achieved a breakthrough: accurately predicting protein structures from amino acid sequences—a challenge that had eluded scientists for decades. Understanding protein folding is crucial for drug discovery and disease research. DeepMind’s spin-off, Isomorphic Labs, is leveraging the latest AlphaFold models and partnering with major pharmaceutical companies to accelerate biomedical research, potentially leading to new treatments at an unprecedented pace.

The finance industry quickly embraced AI. PayPal implemented advanced algorithms to detect and prevent fraud in real time, building trust in digital payments. High-frequency trading firms utilized algorithms executing trades in fractions of a second. Companies like Renaissance Technologies used machine learning for trading strategies, achieving remarkable returns. Algorithmic trading now accounts for a significant portion of trading volume, increasing efficiency but raising concerns about market stability, as seen in the 2010 Flash Crash.

In 2014, Ian Goodfellow and colleagues developed Generative Adversarial Networks (GANs), consisting of two neural networks—the generator and discriminator—that compete against each other. This dynamic enabled creating highly realistic synthetic data, including images and videos. GANs have generated lifelike human faces, created art, and assisted in medical imaging by producing synthetic data for training, enhancing diagnostic models’ robustness.

In 2017, Transformer architectures introduced a significant shift in AI methodology, fundamentally changing natural language processing. Developed by Google Brain researchers, Transformers moved away from traditional recurrent and convolutional neural networks. They rely entirely on attention mechanisms to capture global dependencies, allowing efficient parallelization and handling longer contexts.

Building on this, OpenAI developed the Generative Pre-trained Transformer (GPT) series. GPT-3, released in 2020, demonstrated unprecedented capabilities in generating human-like text and understanding context. Unlike previous models requiring task-specific training, GPT-3 could perform a wide range of language tasks with minimal fine-tuning, showcasing the power of large-scale unsupervised pre-training and few-shot learning. Businesses began integrating GPT models into applications from content creation and code generation to customer service. Currently, multiple models are racing to achieve “artificial general intelligence” (AGI) that understands, reasons, and creates content superior to humans.

The journey from algorithms to AI over the past 25 years is a testament to the seemingly limitless human curiosity, creativity, and relentless pursuit of progress. We’ve moved from basic algorithms to sophisticated AI systems that understand language, interpret complex data, and exhibit creativity. Exponential growth in computational power, big data, and breakthroughs in machine learning have accelerated AI development at an unimaginable pace.

Looking ahead, predicting the next 25 years is challenging. As AI advances, it may unlock solutions to challenges we perceive as insurmountable—from curing diseases and solving energy problems to mitigating climate change and exploring deep space. AI’s potential to revolutionize every aspect of our lives is vast. While the exact trajectory is uncertain, the fusion of human ingenuity and AI promises a future rich with possibilities. One wonders when and where the next Google or OpenAI may emerge and what significant good it may bring to the world!