Visa’s investments in artificial intelligence (AI) and other technologies will reportedly enable it to block 80 million fraudulent transactions worth $40 billion by 2023.
The figures were reported in a report published on Tuesday (July 23) by Charles Lobo, Visa’s regional risk manager for Central and Eastern Europe, the Middle East and Africa, who told Reuters the figures.
“Despite this, a lot of bad things are still happening,” Lobo said in the report.
Over the past five years, Visa has invested more than $10 billion in technology around the world, according to the report, including $500 million in AI and data infrastructure to prevent fraud.
PYMNTS Intelligence finds that financial institutions are increasingly adopting AI and machine learning (ML) tools to combat fraud.
According to a joint PYMNTS Intelligence and Hawk project, “Leveraging AI and ML to Stop Fraud,” these efforts appear to be working, as financial institutions that currently use AI and ML to mitigate fraud have seen a sharp decline in common forms of fraud.
In May, Visa announced it had launched an AI-powered, real-time fraud detection service in the UK to help prevent account-to-account (A2A) fraud.
The company has made the “Visa Protect for A2A Payments” service available to all UK banks after a pilot program uncovered 54% more fraudulent activity than was identified by banks’ fraud prevention systems.
Also in May, Visa announced a generative AI solution designed to help card issuers combat enumeration attacks, in which threat actors use automated scripts, botnets and other technologies to conduct card-testing attacks.
Visa’s tools learn normal and anomalous transaction patterns, identify potential complex enumeration attacks in real time, and when used in conjunction with a rules engine, enable clients to use risk scores for authorization decisions.
In March, Visa announced it would use AI in three new applications within its fraud and risk management technology platform to protect card issuers, merchants and consumers.
“We continue to invest in making Visa credentials as secure as possible and extending those protections more broadly across the payments ecosystem,” James Mirfin, Visa’s senior vice president and global head of risk and identity solutions, told PYMNTS’ Karen Webster.
