Credit card fraud is constantly evolving with the rapid advancement of technology, introducing new methods of deception. Visa has implemented artificial intelligence and machine learning technologies to combat these threats. This innovative approach has prevented about $40 billion in fraud over the past year.
Visa’s developed system analyzes each transaction in detail. While evaluating transactions, it considers over 500 different attributes and analyzes 300 billion transactions through a database. As a result of these analyses, the artificial intelligence model scores each transaction and can detect potential fraudulent activities.
How Does Artificial Intelligence Detect Fraud?
Fraudsters continue to commit fraud using various methods. For example, an ‘enumeration attack’ creates primary account numbers (PAN) and repeatedly tests these numbers. These attacks can cause annual losses of $1.1 billion.
Additionally, fraudsters continue their scams using methods like deepfake and social engineering. Convincing phishing messages created with generative artificial intelligence tools and frauds conducted using voice cloning technology can lead to large-scale money transfers.
Fraudsters Use New Technologies for Deception
Visa’s efforts in this area are supported by a $10 billion investment in technology over the last five years. These investments are made to reduce fraud rates and enhance network security. Visa official James Mirfin mentioned that these technologies allow the rapid detection of new types of fraud and the identification of high-risk transactions, giving customers the chance to decline these transactions.
In the future, Visa is expected to continue reducing fraud rates by further developing its artificial intelligence and machine learning technologies. These advancements not only protect Visa’s customers but also enhance the security of financial systems.