Visa, a global leader in digital payments, has announced a major milestone in its fight against fraud. By leveraging artificial intelligence (AI) and machine learning, the company successfully blocked 80 million fraudulent transactions from October 2022 to September 2023. As CNBC reported, his impressive feat prevented a staggering $40 billion in potential losses for consumers and businesses alike.
As cybercrime continues to evolve and become more sophisticated, Visa’s proactive approach to fraud prevention has never been more critical. Experts project that cybercrime could cost the world $10.5 trillion annually by 2025, rivaling the economies of some of the largest countries. Visa’s AI-powered defenses stand as a crucial line of defense against this growing threat.
Using AI To Fight Fraud
Benzinga reports that the company’s sophisticated AI model evaluates over 500 different attributes for each transaction, enabling real-time risk assessment and fraud prevention.
As fraudulent tactics become more advanced, Visa remains vigilant in its efforts to protect consumers and businesses alike. Scammers are increasingly leveraging AI to generate fake account numbers and conduct enumeration attacks, which involve testing numerous combinations of account numbers to identify valid ones.
The rise of generative AI, voice cloning, and deepfakes has further complicated the landscape of fraud prevention. These technologies can be used to create convincing scams, such as the recent case in Hong Kong where a deepfaked CFO’s voice was used to authorize a fraudulent transfer of $35 million.
Despite these challenges, Visa’s commitment to innovation and investment in AI-powered fraud prevention has yielded impressive results. The company’s efforts have not only protected millions of consumers but also helped maintain trust in the global financial system.
Visa’s AI-Powered Fraud Prevention
Visa’s advanced AI model is the backbone of its fraud prevention efforts. It assigns real-time risk scores to each transaction, evaluating over 500 different attributes. This allows Visa to quickly identify and block suspicious activity.
Visa has invested heavily in this technology, spending $10 billion over the last five years to reduce fraud and increase network security. “AI and machine learning are critical tools in our fight against fraud,” said Jack Forestell, Visa’s Chief Product Officer. “Our investment in these technologies helps us stay ahead of the curve and protect our customers.”
Consumer Protection
Regulators also have a role to play in protecting consumers. They must ensure that financial institutions are held to high standards when it comes to security and fraud prevention.
As a consumer, you can do your part by staying vigilant. Be cautious of unsolicited messages, keep your personal information secure, and report any suspicious activity to your bank or credit card company.
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