Visa has reported an 85% increase in blocked fraudulent transactions, utilising AI and machine learning to enhance security during the holiday shopping season.
Visa, the global payments technology company, has reported a significant enhancement in its fraud prevention capabilities, attributing this success to its investment in artificial intelligence (AI) and machine learning. According to a press release issued on December 17, the firm blocked 85% more suspected fraudulent transactions globally on Cyber Monday compared to the previous year. This achievement comes in the face of a 200% surge in suspected fraudulent transactions at both physical and digital retail locations.
Paul Fabara, Visa’s Chief Risk and Client Services Officer, stated, “Although crooks are using AI more and more, so are we. And that’s paying off.” He elaborated on how the company’s efforts during the holiday shopping season have enhanced its ability to counteract fraudulent attempts, reaffirming Visa’s commitment to maintaining safety in financial transactions for consumers.
Over the past five years, Visa has invested approximately $11 billion in advancing its fraud prevention technology. A notable introduction to its suite of tools is the Visa Account Attack Intelligence Score (VAAI Score), which was launched earlier this year. This tool utilises generative AI to pre-empt fraud before it occurs, irrespective of the shopping channel. Fabara remarked in a May 7 press release that the VAAI Score aids financial issuers in defending against enumeration attacks—where threat actors deploy automated scripts and bot networks to conduct card testing assaults.
The company highlighted that financial institutions employing AI and machine learning to bolster their fraud prevention measures reported a marked decline in common fraud incidents. A collaboration between PYMNTS Intelligence and Hawk, entitled “Leveraging AI and ML to Thwart Scammers,” revealed these institutions are 17% less likely to fall victim to tech support impersonation and IRS impostor scams compared to those relying on traditional tools.
Visa also revealed that its investment in AI and digital technology has resulted in the prevention of approximately 80 million fraudulent transactions valued at around $40 billion in 2023 alone. This trend underscores the growing reliance on intelligent systems to enhance security and reduce fraud within the burgeoning landscape of digital payments.
Source: Noah Wire Services
- https://www.pymnts.com/fraud-prevention/2024/visa-ai-helped-block-85percent-more-fraud-on-cyber-monday/ – Corroborates Visa’s AI and machine learning blocking 85% more suspected fraudulent transactions on Cyber Monday and the company’s $11 billion investment in fraud prevention technology.
- https://www.pymnts.com/fraud-prevention/2024/visa-ai-helped-block-85percent-more-fraud-on-cyber-monday/ – Supports the introduction of the Visa Account Attack Intelligence Score (VAAI Score) and its use in defending against enumeration attacks.
- https://www.pymnts.com/fraud-prevention/2024/visa-ai-helped-block-85percent-more-fraud-on-cyber-monday/ – Confirms financial institutions using AI and machine learning are 17% less likely to experience tech support impersonation and IRS impostor scams.
- https://www.pymnts.com/fraud-prevention/2024/visa-ai-helped-block-85percent-more-fraud-on-cyber-monday/ – Details Visa’s prevention of 80 million fraudulent transactions valued at $40 billion in 2023.
- https://www.businessinsider.com/sc/how-ai-transforming-fraud-prevention-in-digital-payments – Explains how Visa has been using AI for over 30 years to combat fraud and the growth of e-commerce leading to increased fraud losses.
- https://www.businessinsider.com/sc/how-ai-transforming-fraud-prevention-in-digital-payments – Describes the Visa Protect suite of solutions, including real-time risk scoring to prevent fraud and secure digital transactions.
- https://www.businessinsider.com/sc/how-ai-transforming-fraud-prevention-in-digital-payments – Highlights the challenges in balancing fraud prevention with avoiding valid transaction declines and the role of AI in this balance.
- https://www.pymnts.com/acquisitions/2024/visa-buys-featurespace-to-bolster-fraud-prevention-efforts/ – Mentions Visa’s acquisition of Featurespace to enhance its anti-fraud capabilities using AI-powered solutions.
- https://www.pymnts.com/acquisitions/2024/visa-buys-featurespace-to-bolster-fraud-prevention-efforts/ – Details the combined expertise of Visa and Featurespace in managing fraud in real-time with AI-powered solutions.
- https://www.pymnts.com/fraud-prevention/2024/visa-ai-helped-block-85percent-more-fraud-on-cyber-monday/ – Quotes Paul Fabara on the effectiveness of Visa’s AI in combating fraud during the holiday shopping season.
- https://www.businessinsider.com/sc/how-ai-transforming-fraud-prevention-in-digital-payments – Provides context on the evolving nature of fraud tactics and technology, and Visa’s continuous improvement of its risk-scoring models.
