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

Banking-as-a-service set for 240% growth in next five years

Fintech pathfinders are building global brands and partnerships to cash in on banking-as-a-service opportunities which may be worth US$38 billion by 2027

IBM moves into digital product engineering with Dialexa deal

The acquisition of Dialexa will be IBM Consulting's first in the digital product engineering services market, estimated to reach US$700bn by 2026

Lack of digital skills jeopardising digital transformations

The success of digital transformations depends on how fast certain industries can ready their workforce for the cloud, 5G, AI/ML and IoT, says a new report

Martech moves into a new era of data and analytics

Data & Data Analytics

Open source security is key as cyber attacks increase 700x

Cloud & Cybersecurity

Developers under pressure in race to the cloud, study finds

Digital Transformation