MasterCard Worldwide has added two services to its existing fraud-detection system, enabling card issuers in the United States and parts of Europe, including Ireland and the United Kingdom, to protect cardholders and reduce fraud-related costs, MasterCard announced on Dec. 7.

The new additions include immediate fraud scoring and compromised-account services.

The fraud-scoring service provides issuers with a predictive score during authorization that indicates the likelihood a transaction over MasterCard’s network is fraudulent. It also enables issuers to identify and immediately prevent fraudulent transactions, which may help enhance existing fraud-detection capabilities and further reduce costs, according to MasterCard.

The scoring service is available in the U.S., Canada, South America, the UK, Ireland, the Netherlands, Italy, Germany and Eastern Europe. It will be available for the rest of Europe and other markets in 2011.

The compromised-account service provides issuers fraud protection for accounts more prone to fraud, enabling issuers to reduce fraud losses and lower re-issuance costs, MasterCard says. It is available in all markets.

Many issuers and other financial institutions are adopting a more analytical and layered approach to combating fraud, Julie Conroy McNelley, a senior analyst with Boston-based Aite Group LLC, tells PaymentsSource.

And while MasterCard may be catering to these needs, it also may be trying to differentiate itself from other networks such as Visa Inc. and American Express Co. as well as from PayPal Inc., McNelley contends.

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