As Fraud Prevention Month approaches, we are once again reminded that the risk of fraud in Canadian finance remains of concern to a majority of the population.
In an ever-evolving digital world, 76% of Canadians are worried that fraud attempts could impact their financial wellbeing, according to a recent report from Mastercard. An even higher percentage, 89%, recognize “the growing threat of financial fraud to individual and community prosperity.”
However, despite fear of risk, most Canadians (90%) trust their card transactions to be secure.
“Our objective is to stay one step ahead of fraudsters to protect businesses and their consumers,” says Amisha Parikh, Vice President of Security Solutions for Mastercard in Canada.
Parikh says that modern technology is key to combatting fraud.
“Mastercard is revolutionizing the speed and precision of our anti-fraud solutions through the continued implementation of new technologies, including the evolution of Artificial Intelligence,” Parikh stated.
Scam Protect, a suite of specialized solutions powered by AI, was launched by Mastercard last year.
Biometric authentication, tokenization, and contactless payments are other technologies that help Mastercard “strike the perfect balance between robust fraud prevention and seamless, frictionless user experience,” according to a statement from the firm.
“Our technology enhances our ability to foresee potential fraudulent attempts,” said Parikh.
One observation from Mastercard’s report is that small businesses represent a large majority of Canada’s economy—yet they are on average more vulnerable to the damaging effects of financial fraud, including loss of consumer trust, than major brands.
The payments titan posits that adopting modern fintech is a key step for small businesses to take in a digital-first world.
“Mastercard believes small businesses are the backbone of Canada’s economy,” says Parikh. “We continually invest in new solutions and strategic partnerships to better equip small business owners and entrepreneurs with the tools to defend against fraud.”
Last year, Mastercard piloted an initiative targeting smaller local businesses in BC.
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