When it comes to the risk posed by fraudsters and scammers, bad actors are increasingly reliant on persuading people to send them money – rather than stealing it directly from their bank accounts.
Fake text messages or phone calls purporting to be from official companies or financial institutions are on the rise, with 2025 research by Mastercard finding that 80% of UK respondents had been targeted by a scam attempt in the previous year.
This problem led 66% of people to agree that it is now harder to secure their information on digital platforms than it is to secure their own home.
“While cybercrime and fraud are not new, it’s the convergence of the two into a single, more complex and fast-moving issue that’s changed the landscape as we know it,” says Laura Quevedo, executive vice-president, Fraud & Decisioning Solutions at Mastercard.
To combat this, the global payments technology company has introduced new systems to detect threats early and in real time, and it doesn’t matter whether these have been created by humans or the emerging use of AI.
It is also committed to educating the public. “People are less likely to become a victim of a scam if they’re armed with the tools and resources to identify and report these crimes,” says Quevedo.
Trusting tech ... and gut instinct
For retailers – especially small businesses – the disruption caused by fraud or scams is now a constant consideration. Lee Thompson realised a dream last year when he opened his men’s personal care shop, Gentlemen’s Bits of Margate, selling everything from beard combs to cufflinks.
He didn’t think much about the scale of the problem before launching, but admits he does so far more now that things are up and running. “I almost accept it will happen at some point,” he says. “It does make me hypervigilant and if something feels off, I will question it. Gut instinct plays a big part.”
Thompson does take precautions; for example, Mastercard’s online ID checks are used to validate orders made via his gentsbits.shop website, and in-store he has lowered his tap to pay limit preferring customers use chip and pin to pay.
Mastercard has made innovative advances, providing a scam-risk score to banks so that they are able to detect and stop scams before funds leave a victim’s account. This first-of-its-kind solution, called Consumer Fraud Risk, is already live in the UK and uses AI to analyse transactions in real time for signs of fraud, such as inconsistencies in payment accounts and in transaction patterns – helping to reduce authorised push payment scams.
Being realistic about the inevitable
Consumers certainly have greater insight into the risks, with the Mastercard study finding that 53% believe transaction fraud is “so common that getting scammed is inevitable”.
Thompson has seen this first-hand when wary customers discovering his brand on search engines or social media contact him first to check his website is legitimate.
Mastercard’s Quevedo advises: “If something seems too good to be true, it probably is. Never share personal information or give money to someone you don’t know or trust. Banks will never ask you to confirm your bank details over the phone.”
She also warns consumers of the need to slow down because scammers will often use urgency or the fear of missing out to trick people into sending them money.
Turning on smartphone app transaction alerts and monitoring statements also helps quick action to be taken if something looks amiss.
Back in Margate, Thompson says he won’t be deterred by the risk of cybercriminals threatening his place at the heart of the Kent seaside town. “Scams and fraud are among the many risks you take when opening a business,” he says. “But you do your best to avoid it, choose the right tools, and work towards being as secure as possible.”
Scam detective
Find out more about Mastercard’s state of the art AI technology
and how it is working behind the scenes to combat fraud and protect retailers and their customers at mastercard.com
