Visa Announces New AI-powered Fraud Prevention Tools

April 3, 2024

A recent announcement by Visa reveals the addition of three new AI-powered risk and fraud solutions to their end-to-end Visa protection suite to be launched in H1 2024.

The Products

Visa Deep Authorization (VDA): Developed to address challenges facing issuers as a result of increasingly sophisticated digital fraud, VDA is a new transaction risk scoring solution tailored to better manage CNP payments. Powered by a world-class deep learning recurrent neural network (RNN) model and petabytes of contextual data, VDA is designed to combat fraud without disrupting digital transaction experiences.

Expansion of Visa Advanced Authorization (VAA) and Visa Risk Manager (VRM) for non-Visa card payments: Visa’s extensive, AI-powered fraud risk management solutions are now network scheme agnostic, allowing issuers to simplify their fraud operations into a single fraud detection solution that help strengthen fraud protections while reducing costs.

Real-Time, Account-to-Account Payment Protection: Visa’s first fraud prevention solution built specifically for immediate payments, including P2P digital wallets, account to account transactions and central banks’ instant payment systems. Powered by deep learning AI detection models, this new service provides a risk score in real time that helps financial institutions prevent fraud by automatically blocking bad transactions before they happen.

In a recent press release, Mastercard has named dozens of new contributors to the program, which marries a combination of efforts from consumers, businesses, financial institutions, and cities.

The new products are designed to prevent fraud in immediate account-to-account and card not present (CNP) payments, and transactions made within and without Visa’s network.

Visa protect is an immense suite consisting of nearly 200 Visa-added value products separated into five categories: Acceptance, Advisory, Issuing, Open Banking, and Risk and Identity.

A combination of AI and fraud prevention, Visa has been made significant investments to help their clients navigate this technologically heavy market; in the last five years only, at least $10billion have been siphoned to technology and innovation to increase network security and thus reduce fraud, and it seems to be working: last year alone, Visa managed to help block $40 billion in fraud: almost twice the amount from the previous year.

Digital payments go far beyond completing a sale – we are entering an era of modern commerce where winners move fast, AI is essential, experiences are flexible and security is native.

As digital fraud grows in volume and sophistication, Visa is keeping pace by bolstering our powerful suite of risk and fraud solutions through our unmatched technology innovation and AI expertise, and expanding their utility beyond the Visa network.

The need for security solutions is ever growing, and the addition of AI to fraud protection can be a huge boon for merchants and customers alike. 

This is a great step toward the fight against scammers: the willingness to invest in new technology, products, and resources will surely encourage other important players in the payment industry to follow suit. 
 

Want to learn more? Check out Payments Cards and Mobile’s full write-up here.

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