Mastercard's Push for Numberless Cards to Combat Online Fraud

Mastercard is encouraging a shift to numberless physical cards to help reduce fraud, particularly for online transactions. The company highlighted that while cyber breaches often lead to criminal activity, lost or stolen physical cards can also contribute to fraud, reports PaymentsDive. According to Mastercard's internal data, online purchase fraud occurs at a rate seven times higher than in-store fraud. Additionally, nearly two-thirds of consumers face difficulties when manually entering their card details.

“We’re transitioning from manual entry and passwords to seamless, secure payments with just a few clicks, similar to how we moved from signing and swiping to tapping cards,” said Jorn Lambert, Mastercard’s Chief Product Officer. He emphasized that the new approach leverages advanced encryption and tokenization to safeguard sensitive data.

Beyond introducing anti-fraud measures for online shoppers, Mastercard is strengthening its cybersecurity infrastructure. In September, the company acquired Boston-based cybersecurity firm Recorded Future for $2.65 billion. The two companies had previously collaborated on an AI-driven service that alerts banks when debit and credit cards may be compromised.

As online card fraud increases, both consumers and businesses express growing concerns about online shopping. An Experian survey of 2,000 consumers and 700 companies revealed that 84% of respondents worry about identity theft—a 20-point rise from the previous year. Additionally, 71% of merchants fear that cybercriminals are using AI to perpetrate fraud.