Visa Enhances Digital Payments with AI-Powered Fraud Prevention Solutions

Visa, a leading global payment technology company, has unveiled three advanced AI-powered solutions as part of its comprehensive Visa Protect suite. This initiative is part of Visa’s commitment to staying ahead of emerging threats and ensuring secure and seamless digital payment experiences for their users.

The payment technology has made security and fraud prevention its top priority, emphasizing that in the past year alone, it has successfully prevented $40 billion in fraudulent activities.

The company is fervent at protecting digital transactions and maintaining the integrity of the payment ecosystem and now confidently boasts that the number of fraud cases within its network is low, as it is only around 7 cents per $100. However, security precautions are never enough, as fraudsters always devise new means to perpetuate their illicit acts. They continue to attempt to steal users’ money through various phishing scams and other illegal methods.

AI Solutions by Visa to Combat Fraud

James Mirfin, Senior Vice President at Visa, emphasizes the critical need for transformative and adaptive security solutions in the era of real-time digital payments. Their strategic objective is to enhance Visa’s suite of risk and fraud solutions through continuous technological innovation and leverage its deep AI expertise. Consequently, to combat fraudulent activities, the company has revealed three new solutions. These approaches will extend their utility beyond the Visa network, providing a broader range of applications and use cases.

One of the newly introduced features is Visa Deep Authorization (VDA), a transaction risk-scoring solution specifically designed to address the challenges faced by issuers in combating sophisticated digital fraud, particularly card-not-present payments. Leveraging advanced deep learning AI models and contextual data, VDA combats fraud while ensuring smooth digital transactions.

The company also added the expansion of visa advanced authorization (VAA) and visa risk management (VRM) for non-Visa card payments. Visa’s AI-powered fraud risk management solutions now support various payment networks. This strategic move allows issuers to streamline their fraud operations by utilizing a single detection solution, enhancing fraud protection, and reducing operational costs.

The third solution is real-time, account-to-account payment protection. This solution is specifically designed for immediate payments on P2P digital wallets and account-to-account transactions. By employing advanced deep learning AI detection models, it provides real-time risk scoring, empowering financial institutions to proactively block fraudulent transactions. Mirfin, in a report, stated:

“The new solution will prove especially advantageous for smaller financial institutions that don’t have the resources or teams in place to grapple with the operational burden of risk management.”

He also mentioned that users have the option to choose between using the VDA or VAA, or even both, through the Risk Manager. Alternatively, they can also establish certain rules to effectively manage risk across their portfolios. This new innovation will be available to clients starting in the first half of 2024, with specific launch dates varying by product and market.

next

Artificial Intelligence, News, Technology News