Visa’s AI fraud prevention strategy blocks US$25bn in annual fraud

By Marcus Lawrence
Visa has announced that its AI-powered Visa Advanced Authorisation (VAA) solution assisted financial institutions with the prevention of around US$25bn...

Visa has announced that its AI-powered Visa Advanced Authorisation (VAA) solution assisted financial institutions with the prevention of around US$25bn in annual fraud.

VAA monitors transactions and uses AI to evaluate patterns or inconsistencies that could indicate fraudulent behaviour.

Highlighting not only the success but also the frictionless nature of the solution, Visa noted in its press release that, through the VisaNet platform, VAA analysed over 127bn transactions last year with each process taking around one millisecond.

SEE ALSO:

The AI analysis’s low margin for error benefits financial institutions through the mitigated risk of a falsely declined payment leading to the use of a competitor’s card.

Visa noted that a study from Javelin Strategy and Research found that 51% of cardholders revert to an alternative payment method during a transaction that featured a false decline.

"One of the toughest challenges in payments is separating good transactions made by account holders from bad ones attempted by fraudsters without adding friction to the process," said Melissa McSherry, SVP and Global Head of Data, Risk and Identity Products and Solutions at Visa, in the press release. 

"Visa was the first payment network to apply neural network-based AI in 1993 to analyze the riskiness of transactions in real time, and the impact on fraud was immediate. By striking the right balance between human expertise and technology innovation, we continue to evolve our capabilities as new AI breakthroughs expand the realm of what's possible."

Share

Featured Articles

Executive Q&A with CEO Guy Levy-Yurista of Sythnace

Chief Executive Officer of Synthace, Guy Levy-Yurista, Ph.D, shares how the cloud-based Sythnace is changing the game for scientists within R&D

Executive Q&A with Shuki Licht, SVP & CIO, Finastra

As SVP and Chief Innovation Officer Shuki Licht discusses life at Finastra, a provider of financial software applications, open-platform and marketplaces

Profits continue to soar for Belfast-based IT firm Kainos

Kainos sales grew by 29% from £235m to £303m, as reported in the financial year ending in March 2022. Major clients include the UK government and the NHS

Executive Q&A with Ciaran Dynes, CPO of Matillion

Cloud & Cybersecurity

Executive Q&A with Tom Homer, President, GTT

Enterprise IT

Trailblazer: Genevieve Bell - a leading mind in cybernetics

AI & Machine Learning