The 39-year-old American began the day one stroke behind Matthew, who joined the LPGA Tour in 1995 and did not break through for a victory until last year when she won the Hawaiian Ladies Open.
Fil-Am Dorothy Delasin closed out with a one-over 73 for a 294 total and a share of 20th place with three others. But despite finishing 10 strokes off the winner, the three-time LPGA champion still managed a $13,080 purse or roughly P650,000.
The Philippines Jennifer Rosales shot a 74 and went home with a 299 total worth $4,335. She wound up tied for 46th barely a week after finishing fourth and winning $64,528 (P3.3 million) in the British Womens Open the fourth and last major of the season.
Mallon played cautiously with no bogeys and two birdies through the first 11 holes. She settled for bogeys on 12, 13 and 16, reaching the clubhouse at 4-under-par 284.
Matthew, meanwhile, unraveled on the back nine, beginning with a triple-bogey 7 on No. 12. She bogeyed 13, 15 and 18, finishing with a 77 and second place at 286. (AFP)
It was the 14th career victory for Mallon, whose best performance this season was tie for eighth at the Womens British Open.
Mallon, who won this event in 2000, captured a tournament for the first time since the 2000 du Maurier Classic and earned 180,000 dollars.
Michele Redman shot her second straight 72 and tied Michelle Ellis of Australia for third place at 287. Ellis shot a 74 on Sunday.
Defending champion Annika Sorenstam played a European event and was not entered. (AFP)