Visa Enhances Security Across Payment Ecosystem with AI-Driven Solutions

March 29, 2024 | by


Visa has taken a proactive step to combat the rising threat of payments fraud by harnessing the power of artificial intelligence (AI). With real-time and account-to-account transactions becoming increasingly prevalent, Visa has recognized the need to enhance their fraud and risk management capabilities. By deploying AI in three new applications within its technology platform, Visa aims to provide greater security for issuers, merchants, and consumers across the payment ecosystem. This strategic move showcases Visa’s dedication to extending protective measures to the broader network, addressing the growing size and complexity of digital payments fraud. The introduction of AI-powered solutions will enable Visa to streamline fraud management tools, add new anti-fraud measures, and provide enhanced authorization rules, ultimately bolstering security and preserving the integrity of the global payments landscape.

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Expanding protection beyond Visa transactions

James Mirfin, Senior Vice President and Global Head of Risk and Identity Solutions at Visa, acknowledged that the fraud rate on Visa’s network was around 7 cents per every $100, which is comparable to the figure for Square. However, Visa recognizes the challenge posed by fraudsters who exploit human vulnerabilities through tactics like phishing and business email compromise scams. Therefore, Visa is committed to enhancing security measures beyond Visa transactions to combat the evolving landscape of digital payments fraud.

Merchants operating outside North America and financial institutions face unique challenges in managing fraud detection and prevention. These entities often handle multi-network card portfolios, making it imperative to have robust fraud management tools in place. Visa aims to streamline fraud management tools and introduce new anti-fraud and authorization rules across portfolios, facilitating the authorization of legitimate transactions while reducing the burden of risk management.

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AI-powered solutions for enhanced security

Visa has announced the Visa Protect Suite, an advanced suite of AI-powered innovations. This suite includes the Visa Account Updater and a series of services that enable real-time fraud identification. The suite also incorporates neural network models for deep learning, enhancing security measures. In addition, Visa introduces Visa Deep Authorization, a solution designed to increase authorization rates and reduce fraud associated with card-not-present transactions.

Furthermore, Visa is rolling out the Advanced Authorization and Risk Manager for non-Visa card payments. This innovation facilitates fraud management for issuers across different payment networks. Additionally, Visa is introducing real-time Account-to-Account Payment Protection, providing a fraud solution for instant transactions. This solution utilizes risk scoring to enhance the security of transfers between accounts and digital wallets.

Visa’s AI-powered solutions are set to be deployed in the first half of the year, bolstering the company’s layered approach to securing the payments ecosystem against evolving fraud tactics.

Bridging networks to combat fraud

Visa’s strategy involves employing advanced models to assess risk scores in real-time for all transactions, regardless of whether they occur within or outside Visa’s network. This approach enables both sending and receiving banks to make informed decisions, enhancing the overall security of the transaction process. By connecting and scoring transactions across different payment networks, Visa aims to identify and mitigate fraud more effectively.

A notable collaboration between Visa and a U.K. bank has provided valuable insights into the detection of “mule” accounts used for illicit fund transfers. This collaboration highlights the importance of cross-network visibility in combating financial crime. By leveraging partnerships and sharing information across networks, Visa can enhance its ability to detect and prevent fraudulent activities.

These efforts to bridge networks are especially beneficial for smaller financial institutions that may lack the resources and infrastructure to address the complex challenges of risk management effectively. Visa’s tailored tools empower these institutions to enhance their fraud prevention measures, contributing to a more secure and resilient payments ecosystem.


Benefits for smaller financial institutions

Smaller financial institutions face unique challenges in managing risk and fraud prevention. Limited resources and infrastructure can hinder their ability to implement comprehensive risk management strategies. However, Visa recognizes the importance of supporting these institutions and has developed tailored tools to address their specific needs.

By providing smaller FIs with access to advanced fraud management solutions, Visa empowers them to enhance their fraud prevention measures. This support helps level the playing field, allowing smaller FIs to effectively combat fraud and protect their customers. Visa’s commitment to fostering a more secure payments ecosystem extends to institutions of all sizes.

Visa’s fight against payment fraud

Visa’s expansion of AI-driven security solutions represents a significant step forward in the fight against payment fraud. By harnessing the power of artificial intelligence, Visa can leverage its extensive global data to proactively identify and prevent fraudulent activities. This proactive approach allows Visa to stay ahead of fraudsters and adapt to rapidly evolving tactics.

Visa’s commitment to the integrity of the global payments landscape is evident in its dedication to offering advanced protection to its clients. By continually enhancing its security measures and collaborating with industry stakeholders, Visa contributes to creating a more secure and resilient payments ecosystem. As technology and fraud tactics evolve, Visa remains at the forefront of innovation, ensuring the security and trust of payment transactions worldwide.

In conclusion, Visa’s deployment of AI-powered solutions to enhance security across the payment ecosystem demonstrates its commitment to combatting fraud. By expanding protection beyond Visa transactions, Visa aims to address the challenges faced by merchants and financial institutions. Through the rollout of advanced authorization and risk management tools, Visa empowers institutions to enhance fraud prevention measures, benefiting even smaller financial institutions. Visa’s fight against payment fraud leverages AI and global data to stay ahead of fraudsters, contributing to the integrity of the payments landscape.

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