Artificial Intelligence Fights Fraud: Visa Blocks $40B with Machine Learning
In the fight, against fraudsters the leading payments company Visa has found a partner, in artificial intelligence (AI). Through leveraging AI and machine learning capabilities Visa managed to stop a $40 billion worth of transactions from occurring between October 2022 and September 2023 – an impressive increase compared to the previous year.
Visa’s AI-Powered Fraud Detection
Visas risk and identity solutions leader, James Mirfin shared that the company utilizes intelligence to evaluate more, than 500 aspects of each transaction. “We assess and generate a score – an AI model handles this process. We handle 300 billion transactions annually ” Mirfin disclosed to CNBC. This instant risk evaluation enables Visa to identify and stop behavior like enumeration attacks where wrongdoers employ AI bots to repeatedly try out combinations of card numbers, CVVs and expiration dates until they succeed in getting approval.
AI: A Double-Edged Sword
Artificial intelligence has become a tool, in the fight against fraud. Unfortunately cybercriminals are also taking advantage of it. They are using Artificial intelligence, voice cloning and deepfakes to carry out scams. According to Mirfins warning various scams, like romance scams, investment scams and even pig butchering schemes are now employing AI technology. By utilizing AI cybercriminals can create phishing messages and replicate voices using just a short audio snippet. This allows them to deceive individuals into thinking a family member needs help or convince a bank employee to transfer money unlawfully.
The Mounting Cost of AI-Enabled Fraud
Fraudsters are causing harm to consumers by employing artificial intelligence technology. According to Deloittes Center, for Financial Services the use of AI is projected to escalate fraud losses in the United States from $12.3 billion in 2023 to a $40 billion by 2027. The appeal, for cybercriminals is evident as AI empowers them to target individuals concurrently using resources.
Staying Ahead of the Curve
To tackle the increasing risk of Artificial intelligence driven fraud Visa has dedicated $10 billion in the five years to enhance technology for combating fraud and enhancing network security. Mirfin explained, “When a new form of fraud emerges our system can swiftly detect it flag transactions, as risk allowing our customers to make informed decisions on approving those transactions.” By improving its AI algorithms and maintaining a stance Visa strives to outsmart fraudsters.
The Future of Artificial Intelligence and Fraud Prevention
As artificial intelligence progresses further the ongoing battle, between preventing and facilitating fraud is becoming more apparent. It is crucial for institutions, payment providers and individuals to embrace AI based security measures while staying vigilant against increasingly sophisticated AI driven fraudulent activities. The future of combating fraud will be heavily influenced by the advancements in AI technology, which if utilized correctly can serve as a defense, against financial crimes.
